Highlights of Vietnam’s economy in H1/2019

02-Aug-2019 Intellasia | Hanoi Times | 6:02 AM Print This Post

Vietnam`s economy kept growing track in the first half this year with maintained GDP growth rate and stable CPI.

Vietnam’s economy stayed strong in the first half (H1) of this year with robust retail turnover, record import-export turnover, high foreign direct investment (FDI), stable consumer price index (CPI), growing international arrivals, and a surge in newly-established enterprises. JLL leading professional services firm that specialises in real estate and investment management provides an overview of Vietnam’s economy through following highlights.

GDP growth on track

Vietnam’s economy maintained stable growth with 6.76 percent in H1, a little bit hurt from abnormal movements of the livestock industry caused by African swine fever virus which spread nationwide.

Within the general growth, the industrial and construction sector posted an increase of 9.14 percent, the highest rate amongst sectors, the general Statistical Office (GSO) reported.

Meanwhile, services and agro-forestry-fisheries sectors grew by 6.85 percent and 2.19 percent, respectively during the first half.

The whole year’s growth target of 6.6 percent-6.9 percent is likely achievable thanks to manufacturing and processing sector as they maintain a relatively high level, JLL predicted.

Recorded import-export turnover

The import-export turnover of $245.48 billion in H1 has been the largest six-month value ever, with a trade deficit of $34 million between January and June.

The US and EU remained the two largest export markets of Vietnam, contributing $27.5 billion and $20.6 billion, respectively to the Southeast Asian country’s total exports in the six-month period, with key products namely phones and devices, electronic appliances, garment and textile products.

Meanwhile, China and South Korea continued to be the biggest importers with $36.8 billion and $22.9 billion, respectively, with metals, garments, machinery, electronic equipment, computers and mobiles.

Rising retail sales, international arrivals

In H1, the total sales of consumer goods and services rose 11.5 percent compared to the previous year.

While the total number of foreign tourist arrivals reached 8.48 million, up 7.5 percent on year, as Vietnam remained a favourable destination, according to the Vietnam National Administration of Tourism.

Visitors from Asia still made up the biggest proportion, of which Chinese, South Korean, and Japanese took the lead amongst visitors coming to Vietnam.

FDI commitments to the country totalled nearly $18.47 billion in H1, demonstrating a surge of 90.8 percent from the same period last year.

As much as 1,723 newly-registered projects worth $7.41 billion were reported during the period, increasing 62.8 percent on year.

FDI disbursement was recorded at $9.1 billion, representing an increase of nearly 8 percent on year.

Among 19 investment industries, processing and manufacturing was the most attractive sector, recording $13.15 billion, equivalent to 71.2 percent of the total capital, followed by real estate sector with $1.32 billion and trade and services with $1.05 billion.

Hong Kong (China) took the lead among 95 countries investing in Vietnam in H1 with a total of $5.3 billion, accounting for 28.7 percent of the total FDI during the period. It is followed by South Korea with $2.73 billion and China with $2.2 billion.

CPI increased approximately 2.64 percent in H1, representing the lowest 6-month average increase in the last three years.

The price hike was mainly owing to: (1) demand for food and foodstuff rose 5.4 percent, of which pork meat increased 14.85 percent; (2) the price of construction materials increased by 1.99 percent; (3) stationery price for 2019-2020 school year increased by 2.57 percent, and (4) the price for electricity up 5.84 percent compared to same period last year.

CPI for the remaining two quarters of 2019 is projected to go within the National Assembly’s target of around 4 percent.

Soaring newly-established enterprises

Roughly 67,000 enterprises were newly set up in H1. The registered capital hit a new level at VND12.8 billion per newly-established enterprise each, up 27.7 percent on year.

The number of newly set up firms in real estate sector was 4,000, up 22.2 percent on year and accounting for 6 percent of the total newly-registered enterprises.



Category: Economy, Vietnam

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