Vietnam’s GDP growth in Q2 quickens to 6.61% on robust exports

HANOI – Vietnam’s economic growth accelerated in the second quarter of this year, as robust exports and industrial production amid a global recovery helped offset the impact of the country’s most serious Covid-19 outbreak so far.

Gross domestic product grew 6.61 per cent in the second quarter from a earlier, faster than a revised expansion of 4.65 per cent in the first quarter, the government’s General Statistics Office (GSO) said on Tuesday (June 29).

“Global trade continued to recover,” the GSO said in a statement.

“Domestically, macroeconomic stability has been maintained, while production and trade have seen decent results,” it said.

Vietnam’s exports in the first half of this rose 28.4 per cent from a year earlier to US$157.63 billion (S$211.67 billion), while industrial production increased 9.3 per cent, according to the GSO.

The GSO, however, said an ongoing Covid-19 outbreak is posing a threat to the South-east Asian country’s economic recovery.

After successfully containing the virus for most of last year, Vietnam has been grappling with a rise in infections since late April that accounts for more than three-quarters of the total 16,136 registered cases. So far, there have been 76 deaths.

The outbreak is “evolving in a complicated manner, challenging the management and administration to develop the economy and ensure social security”, the GSO said.

The new outbreak, which forced global giants like Samsung Electronics and Foxconn to temporarily curb their production in northern Vietnam last month, is now spreading rapidly in the country’s southern business hub of Ho Cho Minh City and its neighbouring industrial provinces.

The industrial and construction sector in the April to June period grew 10.28 per cent from a earlier, the GSO said. The services sector expanded 4.30 per cent, while the agricultural sector grew by 4.11 per cent.

Vietnam’s consumer prices in June rose 2.41 per cent from a earlier and were up 1.62 per cent from December, the GSO Said.

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