Vietnam Announces GDP Growth of 7.63 per cent in First Half

Vietnam registered gross domestic product (GDP) of more than VND380 trillion (US$24 billion) in the first six months of 2005, expanding by 7.63 per cent against the same period last year, according to official statistics.

The growth rate, which was announced by the government’s General Statistics Office June 30, is a tad higher than the estimation of 7.59 per cent announced by the Ministry of Planning and Investment on June 24. It is also higher than the 7 per cent achieved in the first half of 2004, mainly due to a surge in commodity exports, especially crude oil exports.

However, the rate is still much lower than the yearly target of 8.5 per cent set by the National Assembly, the country’s highest legislative body, due to the occurrence of serious droughts in the country and soaring import prices of materials for local production, the department said.

In the January-June period, the industrial and construction sector posted the highest GDP growth rate of 9.5 per cent, at VND151.33 trillion (US$9.58 billion). The sector’s contribution to the national figure, however, shrank to 39.79 per cent compared to 41.34 per cent in the same period last year. 

Posting a higher growth rate of 7.6 per cent compared to 7 per cent achieved in the corresponding period last year, the services sector nearly kept up with the industrial and construction sector in terms of GDP contribution. Its GDP was put at VND144.87 trillion (US$9.17 billion) in the reviewed period, accounting for 38.1 per cent of the national total, up from 37.59 per cent in the first six months of 2004.

The agriculture, forestry and fisheries sectors reported the lowest growth of 4.23 per cent, with combined value of around VND84.1 trillion (US$5.32 billion), making up 22.11 per cent of the national figure.

In smaller breakdown, the hotel and restaurant industry surged the most, by 15 per cent, followed by the processing industry, 11.46 per cent, electricity-gas-water industries, 11.35 per cent and banking and finance industry, 8.5 per cent.

The fisheries industry reported the lowest increase in total revenues in the period, which was only 0.59 per cent up on-year.

Since the beginning of the year, Vietnam earned total export revenues of US$14.44 billion and paid US$18 billion for imports, posting on-year increases of 17.4 per cent and 22 per cent.

Vietnam also licensed an additional US$2.77 billion in foreign investment in the period, up 70 per cent on-year.

Vietnam is expected to strive more to reach the GDP growth rate of 8.5 per cent this year compared to 7.69 per cent last year.

International agencies such as the World Bank, the International Monetary Fund and UN agencies put Vietnam’s GDP growth rate at between 7-8 per cent annually for the 2005-2006 period.

• T.V