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Vietnam’s Q1 growth was at the highest level since 2020 despite global economic turmoil, reported The Business Times of Singapore.
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<p style="text-align:justify">Vietnam’s Q1 growth was at the highest level since 2020 despite global economic turmoil, reported The Business Times of Singapore.</p> <table> <tbody> <tr> <td style="text-align:justify"><img alt="Illustrative image (Photo: VNA)" src="https://image-en.nhandan.vn/w800/Uploaded/2024/aslxvtxwtys/2024_04_01/gdp-8589.jpg" /></td> </tr> <tr> <td style="text-align:center">Illustrative image (Photo: VNA)</td> </tr> </tbody> </table> <p style="text-align:justify">The article cited the General Statistics Office (GSO)’s report on March 29 as saying that Vietnam’s gross domestic product (GDP) grew 5.66% year on year in the first quarter, with export growth returning to a double-digit rate. This expansion was greater than those recorded in the same period in the previous four years, but slower than the 6.72% rise in the preceding quarter.</p> <p style="text-align:justify">The largest contributors to Vietnam’s growth during the quarter was the service and manufacturing sectors, which grew 6.12% and 6.98%, respectively.</p> <p style="text-align:justify">The country’s exports in March surged by 14.2% from a year ago to roughly 34 billion USD. Imports also rose by 9.7% from a year earlier to nearly 31.1 billion USD. Overall, exports and imports saw double-digit expansions of 17% and 13.9%, respectively, compared to the same period last year. This resulted in a trade surplus of around 8.1 billion USD in the first quarter.</p> <p style="text-align:justify">Industrial production in March jumped 4.1% year on year. Analysts expected production to catch up with export growth in the coming months, with rising numbers of new orders and depleting inventories. Increased factory activities will also likely boost employment and stimulate consumption more firmly in the second half of the year.</p> <p style="text-align:justify">Even though the improved exports and consumption prospects tend to buoy investment and lending demand, relatively high borrowing costs and limited access to bank loans remain hurdles for domestic companies, the article wrote.</p> <p style="text-align:justify">As of March 25, it said the credit growth of the banking system increased by a modest 0.26% against the end of 2023.</p>
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