Vietnam’s growth up significantly to 6.17% for second quarter

HO CHI MINH CITY – After disappointing GDP growth in the first quarter (5.15% YoY), Vietnam achieved impressive growth of 6.17% in Q2, bringing the figure of the first half (1H) at 5.73%. Sector-wise, solid growth continued to be seen in the manufacturing and construction sectors (+10.5% YoY and +8.5% YoY in 1H, respectively), but the mining sector was still weak (-8.2% YoY) due to low oil prices.

“We will probably see improvement in this sector in the second half if the Government’s proposal to increase crude oil production output this year by one million tons to 13.28 million is implemented,” Vietnam Asseet Management says in its monthly report.

Meanwhile, other major macroeconomic data is encouraging. Vietnam attracted increasing FDI flows YTD with total registered and disbursed amount of US$19.2bn (+54.8% YoY) and US$7.7bn (+6.5% YoY), respectively.

Both exports (+18.9% YoY) and imports (+24.1%) posted the strongest growth in recent years, while YTD trade deficit was recorded at US$2.7bn.

“Tourism, the new strategic growth driver, witnessed a significant jump in the number of international visitors in the first six months (over 6.2mn visitors, +30 YoY). This has put Vietnam in top tourism-growing countries in the world,” VAM says,.

“With inflation almost flat YTD, credit growth is expected to accelerate in the second half to boost growth (Government’s target of 18% for FY2017). Consensus forecast now points to 6.4-6.5% GDP growth for this year.”  www,vietnamam.com  (ATI).