Vietnam’s economy gradually regains growth momentum

15 July, 2020 12:00 AM printer

HANOI: Although Vietnam’s economic growth in Q2, 2020 hit a record low in nearly 30 years due to the serious impact of the COVID-19 pandemic, domestic production and business activities have continued to be maintained, gradually bringing the economy back to its normal state once the disease was put under control.

According to socio-economic data released by the General Statistics Office (GSO) at a recent online press briefing, Vietnam’s gross domestic product (GDP) in the first half of 2020 is estimated to have grown by 1.81 percent over the same period last year, the lowest level in the past decade. Regarding Q2 alone, the economy did not fall into negative growth but GDP only expanded by 0.36 percent year-on-year, the lowest in nearly 30 years and falling below the lowest scenario forecast by the GSO.

Deputy Director General of GSO, Nguyen Thi Huong said that in the context of the COVID-19 outbreak seriously affecting countries around the world, the Vietnamese economy still achieving a relative growth rate is an encouraging result. The main drivers of economic growth remained the manufacturing industry and market service sectors.

 Affected by COVID019, industrial production reached the lowest year-on-year increase in the past 10 years. However, thanks to the early control of the pandemic, all areas of the economy have gradually resumed their normal operations, leading industrial production to rebound and gradually regain its high growth momentum since May.

Notably, two months after the easing and removal of social distancing measures, socio-economic activities have gradually been revived. The number of newly established enterprises in June reached 13,700, up 27.9 percent over the previous month. In addition, the survey of manufacturing firms’ business trends showed that enterprises expect the production and business situation in Q3 to be more positive.

Despite facing numerous difficulties due to the negative impact of COVID-19, activities in banking, insurance and security are also delivering positive signs from the recovery of the domestic macro-economy. Disbursement of social investment capital in the half of the year increased by 3.4 percent over the same period in 2019, while the growth rates of disbursed capital from the state budget in June and the six-month period both reached their highest levels in the 2016-2020 period. This is a positive signal reflecting the results of Vietnam Government’s drastic implementation of measures to promote the disbursement of public investment.

                – Vietnam Embassy to Bangladesh.