VN’s economy shows impetus in first half

08:27 | 01/07/2014

VGP – Viet Nam continued seeing signs of economic recovery with a Gross Domestic Product (GDP) growth in the first half of this year reaching 5.18 % despite a number of difficulties and challenges.

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Viet Nam’s economy expanded by 5.25% in Q2, up from the 5.09% rate in Q1.

The service sector made the biggest contribution to the first-half growth with 2.57 percentage points, followed by industry, which contributed 2.06 percentage points.

FDI disbursement slightly increases

The total Foreign Direct Investment (FDI) disbursement in the first half of 2014 reached US$5.75 billion, a year-on-year increase of 0.9%.

The total registered capital of foreign investors in Viet Nam hit US$6.85 billion over the past six months of the year, equal to 64.7% of the same period last year.

Some 219 projects were added a total capital of US$1.99 billion, equal to 37%.

Processing and manufacturing remained the most attractive to foreign investors in the reviewed period with 326 projects, contributing US$4.8 billion to the total capital, accounting for 70.2%.

The Republic of Korea was Viet Nam’s biggest investor with nearly US$1.55 billion, accounting for 22.6%.

Ho Chi Minh City took the lead in attracting FDI in the period with US$886.3 million, followed by Binh Duong Province US$876.05 million and Dong Nai Province US$688.37 million.

Exports record year-on-year increase of 14.9%

The total export turnover in the first half of 2014 reached US$70.9 billion, increased 14.9% from the same period in 2013.

Thirteen items have joined the US$1 billion export club. It is expected that 22 items will be listed in the club this year, one more from 2013.

Viet Nam’s total export turnover is estimated to reach US$ 150 billion this year.

The nation enjoyed a trade imbalance of US$1.3 billion over the past six months.

Agricultural sector enjoys US$ 4.5 bln trade surplus

The agro-forestry-fishery sector earned around US$ 14.88 billion in export turnover in the first half of 2014, representing a year-on-year increase of 12.7%.

In the January-June period, exports of key agricultural products are estimated at US$ 7.17 billion (up 6.9%), aquatic items at US$ 3.57 billion (up 28.6%) and forestry products at US$ 2.93 billion (up 12%).

Overall the sector enjoyed a trade surplus of US$4.5 billion in the first half of 2014.

Aquatic exports hit US$3.45 billion 

In June, Viet Nam earned US$536 million, bringing the total aquatic export turnover to US$3.45 billion in the first half of the year, up 24.2% compared to the same period last year.

The exports of the products to the US over the past five months attained US$671.86 million, up 45.83%.

Other markets witnessed sharp increases such as Japan up 8.36%, the Republic of Korea up 45.92% and China up 51.74%.

The EU is among the three largest importers of Viet Nam’s aquatic products, making up nearly 18% of the total, reaching more than US$1.18 billion.

Positive signs in industrial production

The Industrial Production Index is expected to post a year-on-year increase of 5.8% over the past six months of this year.

The processing and manufacturing sector is forecast to record a year-on-year growth of 7.8%, contributing 5.5 percentage point of the general growth. 

The electricity production and distribution is to contribute 0.7 percentage point, while the water supply, sewage and waste management sector made up 0.1 percentage point.

Foreign visitors to VN increase by 21% 

Viet Nam has received nearly 4.3 million foreign travelers during the first six months of this year, a year-on-year increase of 21.11%.

Most of source markets recorded positive growth was Hong Kong rising 140.61%, German 115.87%, Laos 38.83%, China 37.45%, Cambodia 30.09%, Russia 25.95%, and Spain 25.73%.

By Thuy Dung