VINACHEM

Vietnam’s gross domestic product (GDP) this year has expanded by 7.02%, above the 6.6%-6.8% target set by the National Assembly early this year, according to the General Statistics Office (GSO).

At a press briefing today, December 27, on the country’s socioeconomic performance this year, GSO General Director Nguyen Bich Lam said that this is the second year in a row that the country has recorded GDP growth of over 7%. Last year, Vietnam’s economic growth hit 7.08%, the highest growth rate since 2008, the local media reported.

Amid the global economic slowdown, escalating trade tensions between the United States and China and market volatility, the 7.02% growth reflects the effectiveness of the Government’s policies and the efforts of all sectors and localities in realizing the 2019 socioeconomic development targets, Lam added.

The full-year GDP expansion is mainly driven by an 8.9% rise in industry and construction, followed by a 7.3% pickup in services and a 2.01% improvement in the agro-forestry-fishery sector.

These sectors' contributions to the overall economic growth are recorded at 50.4%, 45% and 4.6%, respectively.

The main driving force for the country’s economic growth in 2019 is the manufacturing and processing sector, which has expanded by 11.29%, followed by the logistics; wholesale and retail; and finance, banking and insurance sectors, with respective growth rates of 9.12%, 8.82% and 8.62%.

The economic structure has shifted positively with a reduction in the proportion of the agro-forestry-fishery sector to 13.96% of the GDP from 14.68% last year, and an increase in the proportions of the industry and construction and service sectors to 34.49% and 41.64% from 34.23% and 41.12%, respectively, in 2018.

In addition, product taxes, excluding product subsidies, have contributed 9.91%.

This year, the nation's total foreign trade has exceeded US$500 billion. Domestic enterprises have outpaced foreign-invested firms in export growth.

The country has enjoyed an all-time high trade surplus of US$9.94 billion, marking a trade surplus for the fourth consecutive year.

- SGT -