VINACHEM

For the fourth consecutive quarter in a row, economic growth in Vietnam has continued its upward trend and now stands at 4.96% for the first quarter of the year, according to official statistics.

This is the highest growth quarter on quarter Vietnam has achieved in the past three years, reported the General Statistics Office of Vietnam (GSO).

The leading sectors experiencing increases included services (up 5.95%), industry and construction (up 4.69%) and agro-forestry and fisheries (up 2.37%).

Rapid growth of HCM City, Binh Duong and Dong Nai, just to name some, contributed significantly to overall national economic growth.

The GSO reported that the strong performance of the foreign business sector is the critically decisive factor in fueling economic growth.

Vietnam enjoyed a trade surplus of more than US$1 billion in the last three months, which was mostly generated by the FDI sector.

Meanwhile, domestic businesses, especially those operating in the manufacturing and processing industries, continue facing a number of difficulties in production.

In the current context of weak market trends, the fact that the economic growth rate this quarter is higher than the previous quarter is a positive signal, helping to create confidence in investment and consumption.

Commercial banks recently lowered their loan rates in an effort to stimulate investment and consumption. The decision came after finance, banking and insurance just obtained moderate growth of 5.91% in quarter 1, a rather low figure compared to a year earlier.

Along with the loosening of Government policies and the considerable GDP growth in Q1, the move is expected to signal a rebound in real estate trading and will result in great future payoffs.