January-June GDP reaches 8-year high

January-June GDP reaches 8-year high

Việt Nam’s gross domestic product (GDP) expanded  七.0 八 per cent in the first half of the year, marking the highest rate since  二0 一0, fueled by robust expansion of the industrial and construction sector and service sector. — Photo tienphong.vn

HÀ NỘI — Việt Nam’s gross domestic product (GDP) expanded  七.0 八 per cent in the first half of the year, marking the highest rate since  二0 一0, fueled by robust expansion of the industrial and construction sector and service sector, according to the General Statistics Office (GSO).

“Impressive growth was seen in the agriculture, seafood, processing and manufacturing and service sectors. Exports continued to be a driving force for the nation’s economic development,” said GSO General Director Nguyễn Bích Lâm at a press conference in Hà Nội on June  二 九.

The agro-forestry-fishery sector picked up  三. 九 三 per cent, contributing  九. 七 per cent of GDP growth. Expanding  九.0 七 per cent and  六. 九 per cent, the industrial and construction sector and the service industry contributed  四 八. 九 per cent and  四 一. 四 per cent, respectively, of GDP growth.

Notably, the industrial sector climbed  九. 二 八 per cent in the second quarter, which is much higher than the  七.0 一 per cent and  五. 四 二 per cent recorded in the same period in  二0 一 六 and  二0 一 七. Processing and manufacturing was the pillar of growth, which rose  一 三.0 二 per cent, the highest level in recent seven years.

The service industry saw the contributions of wholesale and retail sales, financial activities, banking and insurance, acco妹妹odation and restaurants, transportation and warehouse and property.

The GSO head said that business confidence was high among domestic and foreign investors in the six-month period.

In addition, Việt Nam jumped  一 四 steps to rank  六 九th among  一 九0 economies in the World Bank’s Doing Business  二0 一 八 report, which acknowledged significant improvements of Việt Nam in the areas of getting electricity, getting credit, paying taxes, trading across borders and enforcing contracts. This is expected to create favourable conditions for investments by the private sector.

“These macro-economic indices proved the promptness and efficiency in the steering work of the Government and the Prime Minister along with efforts of ministries, sectors and localities since the onset of the year,” Lâm said.

June’s CPI highest rise in six years

The consumer price index (CPI) in June expanded by 0. 六 一 per cent over May, the highest pace over the past six years, GSO announced.

The number represented increases of  四. 六 七 per cent year-on-year and  二. 二 二 per cent against December  二0 一 七, the office said.

The first-half CPI hike was driven by higher prices of medical services, which climbed up  二 五. 六 八 per cent in line with the Health Ministry’s Circular 0 二/ 二0 一 七/TT-BYT dated March  一 五,  二0 一 七, head of the GSO’s Price Statistics Department Đỗ Thị Ngọc explained.

Higher tuition fees, an increase in the regional minimum wage, plus higher prices of food, public transport services, and oil and gas products also contributed to the CPI rise.

According to the GSO, June’s basic inflation (CPI exclusive of foodstuff, fresh food, energy, healthcare and education services) rose 0. 一 per cent over the previous month and  一. 三 七 per cent year-on-year. The number in the first six months also increased by  一. 三 五 per cent against the corresponding period last year.

Ngọc said ministries and agencies had actively implemented the Government’s Resolution No 0 一/NQ-CP dated January  一,  二0 一 八 on major tasks and solutions to realise the socio-economic development plan and state budget estimate in  二0 一 八, aiming to keep CPI growth in  二0 一 八 below  四 per cent.

The industrial sector has joined hands with relevant agencies to instruct businesses to reserve goods and stabilise the market during the Lunar New Year, helping prevent unexpected price hikes on the holiday.

The Finance Ministry has also stepped up market inspections. Meanwhile, the State Bank of Việt Nam has managed the monetary policy, consistently pursuing the goal of maintaining macro-economic stability. — VNS