Vietnam's Economic Growth Accelerates to 2.62% in Third Quarter

Marco Green
September 30, 2020

Vietnam maintained its upwards trend in exports at a time when COVID-19 has ravaged worldwide trade, with year-on-year growth of 4.2 percent posted in the first nine months of 2020, according to the General Statistics Office (GSO). The median estimate in a Bloomberg survey of five economists was for growth of 2.7%.

Specifically, Vietnam licensed 1,947 foreign direct investment (FDI) projects with total registered capital of 10.4 billion USA dollars, and saw 798 operational FDI projects raise their capital by more than 5.1 billion US dollars, according to the office. The figures rose 11 percent and 3 percent year-on-year in the third quarter, to 80 billion United States dollars and 68.5 billion USD, respectively./.

"The government is aggressively accelerating public investment, and that will surely help boost GDP growth in the fourth quarter", Thuy said.

Full-year GDP growth above 2% "is quite possible on increases in manufacturing, exports and state and family spending", Duong said.

A breakdown of goods and services showed that educational costs saw the largest increase at 2.08%, followed by a 0.62% rise in household utility bills and building materials, which was primarily created by a 3.23% hike in electricity prices and 0.52% rise in cooking gas prices.

Growth in the July-September period, however, remains significantly lower than an expansion of 7.31% recorded at the same period previous year, before the pandemic.

With much of the world economy effectively shut down for long periods in the first and second quarters, gross domestic product expanded just 0.36 percent year-on-year in April and May, although that was better than most countries which suffered painful contractions.

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