VIETNAM’S Q1 GROWTH SLOWS
GDP expands 6.79pc in January-March, down from 7.31pc in December quarter
VIETNAM’S economy grew at a slower pace in the first quarter as weakening global demand for smartphones weighed on exports, government data showed yesterday.
Gross domestic product (GDP) grew 6.79 per cent in the JanuaryMarch period, slower than 7.31 per cent in the December quarter, and compared to 7.45 per cent in the first quarter last year, said the General Statistics Office (GSO).
The processing and manufacturing industry grew 8.63 per cent, while the services sector rose 6.50 per cent and the agricultural sector was up 2.68 per cent, said the GSO.
“The economy is still facing numerous difficulties and new challenges,” it said in a statement.
Exports of smartphones, the country’s biggest export earner and mostly produced by South
Korea’s Samsung Electronics, fell 4.3 per cent from a year earlier to US$12.05 billion (RM49.2 billion) in the first quarter, said the GSO, compared to a 62.2 per cent rise in the first quarter last year.
Overall, Vietnam’s exports in the first quarter rose 4.7 per cent from a year earlier to US$58.51 billion, much slower than an annual expansion of 24.5 per cent in the same period last year.
Capital Economics said it expected Vietnam’s economic growth to slow due to weak exports and tighter fiscal policy.
“Weaker global demand and a downturn in the technology sector have contributed to slowdown in export growth over the past few months, and are likely to weigh on exports over the next couple of quarters,” said the agency in a note.
It expected GDP growth to slow to 6.0 per cent for this year and next year.
The Southeast Asian country posted GDP growth of 7.08 per cent last year, the quickest pace since 2011 and faster than an expansion of 6.81 per cent in 2017.
Vietnam targets economic growth of between 6.6 and 6.8 per cent this year.
Vietnam’s consumer price index for this month rose 2.7 per cent from a year earlier, led by an increase in the cost of food and education services, said the GSO.