HANOI: Việt Nam’s GDP growth in the first six months of the year expanded an estimated 5.52 per cent, down from 6.32 per cent over the same period last year. The slowdown was attributed to global economic volatility and adverse weather, the General Statistics Office (GSO) reported yesterday.
Nguyễn Bích Lâm, GSO general director, said the service industry was the only bright spot in the first half of the year, hitting a three-year record high of 6.35 per cent. Some services saw high growth in the period, including wholesale and retail (up 8 per cent); finance, banking and social insurance (6 per cent); and real estate (3.77 per cent). Industry-construction in H1 also reported a rise in growth of 7.12 per cent; however, it was much lower than the growth rate of 9.66 per cent in H1 2015.
Phạm Đình Thúy, from GSO’s Industrial Statistics Department, said the slowdown was due to a 2.2 per cent reduction in the mining industry, adding that it was a pessimistic sign for the economy as the nation’s natural resources were being depleted. The falling trend of the industry, therefore, is expected to continue in the coming years. Furthermore, a sharp reduction in the global crude oil price also contributed to the mining industry’s slowdown. In H1, agriculture-forestry-fisheries saw a decline of 0.18 per cent for the first time in many years. The decline was reflected in the reduction of 0.03 percentage points in the country’s GDP growth.
Lâm attributed the agriculture-forestry-fisheries’ reduction to adverse weather, including very low temperatures in the northern provinces, a drought in the Central Highlands coffee belt and saline intrusion in the Mekong Delta food basket. GSO experts said it would be hard for the country to meet its GDP growth target of 6.7 per cent this year as the GDP would have to expand to 7.6 per cent in the second half of the year, despite increasing volatility in the global economy.
To meet the annual GDP target, besides strictly implementing solutions and policies that support vulnerable areas, as approved by the Government, the GSO also recommends that the Government and Ministry of Agriculture and Rural Development adopt more effective measures in a timely manner to help the agriculture, forestry and fishery industries overcome their difficulties and achieve higher growth in the second half of the year.
The relevant ministries should also consider taking steps to boost the manufacturing and processing industry, besides continually strengthening high-added-value industries such as tourism, telecommunications, technology and information, as well as banking and finance. It is also necessary to accelerate the disbursement of investment capital sources in accordance with the Government’s plans to boost economic growth, the GSO said, adding that steps to attract further resources for development and investment should also be taken. The legal, business and investment environment must be continually streamlined to create the most favourable conditions for firms and investors, with the aim of providing the momentum needed to boost economic growth, the GSO said.
