Vietnam’s GDP grows 7.72% in Q2

Exports seen rising 17% in the first half

HANOI: Vietnam’s economy grew at a 7.72% annual pace in the second quarter on the back of robust exports, government data showed yesterday, though authorities noted challenges such as rising inflation for the second half of the year.

The Southeast Asian country’s gross domestic product growth compared with an expansion of 5.05% in the first quarter and was the strongest growth rate for the April to June quarter since 2011, the General Statistics Office (GSO) said.

“This is a fairly high growth compared with other countries in the region and in the world, while macroeconomic stability has been maintained,” the GSO said in a report.

Authorities in the one-party communist nation are aiming for year-end GDP growth of up to 6.5%.

Vietnam, a regional manufacturing hub, started lifting its coronavirus restrictions late last year, allowing factories to resume full operations.

The country reopened to the world in mid-March after almost two years of closure.

The GSO, however, warned that Vietnam’s economy would face challenges in the second half, including inflationary pressure, global political uncertainty and the lingering impacts of the pandemic.

“The Covid-19 pandemic has been contained in Vietnam, but its evolvement in the world remains complicated with the possible emergence of new virus variants,” GSO chief Nguyen Thi Huong said.

Earlier this month the World Bank said Vietnam’s economic recovery “remains strong” despite uncertainties caused by the war in Ukraine, lockdowns in China and inflation.

It urged authorities to be “vigilant” about inflation risks associated with rising fuel and import prices, warning they could dampen the recovery of domestic demand.

Consumer prices in Vietnam in June rose 3.37% from a year earlier, led by an increase in the cost for food and energy. Transportation cost rose 21.4% from a year earlier.

“Living costs are much higher due to the higher oil price,” Nguyen Thi Huyen, an office worker in Hanoi, told AFP.

“It’s bad that I have had to spend up to 10% more money for my family without any change in income. If this situation continues, life will be very difficult for us.”

Vietnam has target of capping inflation at 4% this year.

Meanwhile, it is expected to register a trade surplus of $280 million in June.

Exports in June likely rose 20% from a year ago to $32.65 billion, while imports were seen up 16.3% to $32.37 billion, the GSO said.

For the first half of 2022, exports are estimated to have risen 17.3% from a year earlier to $185.94 billion, while imports were seen up 15.5% to $185.23 billion, translating into a trade surplus of $710 million.