VN achieves impressive 5.66% GDP growth in Q1, highest since 2020

March 29, 2024 - 15:08
Việt Nam's consumer price index (CPI), a key measure of inflation, climbed 3.77 per cent year-on-year in the first quarter.
Workers process phone components at Samkwang Co Ltd in the northern province of Bắc Giang. The processing and manufacturing industry grew by 6.98 per cent in Q1. — VNA/VNS Photo Tuấn Anh

Linh Anh

HÀ NỘI — Việt Nam witnessed a remarkable surge in GDP growth rate, reaching 5.66 per cent in the first quarter of 2024 compared to the same period last year. This achievement marks the highest growth rate for the first quarter since 2020.

During the press conference held on Friday in Hà Nội, General Director of the General Statistics Office Nguyễn Thị Hương presented the socio-economic statistics for the first quarter of 2024.

"The socio-economic performance in the first quarter of 2024 has achieved positive results in the context of global economic uncertainties, affirming the effective management and governance policies implemented by the Government, the Prime Minister, ministries, sectors and localities," said Hương.

"The sector of agriculture, forestry and fisheries has demonstrated consistent growth. Livestock farming, particularly pigs and poultry, has flourished with effective disease control measures in place. The forestry sector has made significant progress in forest cultivation, maintenance and protection, ensuring timber harvesting at the appropriate time. The aquaculture industry has achieved favourable outcomes by implementing efficient models for high-quality shrimp farming and benefiting from favourable fishing conditions, resulting in increased exploitation of aquatic resources compared to the same period last year," she said.

According to the GSO, the agro-forestry-fishery sector contributed 6.09 per cent to the overall value added of the economy, growing by 2.98 per cent. The industry-construction sector grew by 6.28 per cent and contributed 41.68 per cent, while the services sector expanded by 6.12 per cent and contributed 52.23 per cent.

In terms of agriculture, the sector saw a 2.81 per cent growth, contributing 0.26 percentage points to the overall value-added growth. The forestry sector rose by 4.08 per cent, contributing 0.02 percentage points, and the fisheries sector climbed by 3.46 per cent, contributing 0.08 percentage points.

The industrial sector showed resilience and continued growth, with a 6.18 per cent increase in added value, contributing 2.02 percentage points to the overall growth. The processing and manufacturing industry led the way with a growth rate of 6.98 per cent, contributing 1.73 percentage points. Electricity production and distribution grew by 11.97 per cent, while water supply, waste management, and wastewater treatment grew by 4.99 per cent. The construction sector experienced significant growth of 6.83 per cent, contributing 0.4 percentage points.

The services sector showcased vibrant trade activities and a strong recovery in tourism due to favourable policies and stimulus programmes. Key product exports also increased significantly, Hương said.

Various service sectors made noteworthy contributions to the overall added value growth. Warehousing and transportation increased by 10.58 per cent, accommodation and catering services grew by 8.34 per cent, wholesale and retail trade increased by 6.94 per cent, financial activities and banking grew by 5.2 per cent, and information and communication increased by 4.14 per cent.

As for the economic structure for the first quarter, the agro-forestry-fishery made up 11.77 per cent, industry-construction 35.73 per cent, services 43.48 per cent and product taxes minus subsidies 9.02 per cent.

Regarding the utilisation of GDP, final consumption increased by 4.93 per cent, contributing 56.77 per cent to the overall growth rate. Asset accumulation increased by 4.69 per cent, contributing 24.07 per cent. Export of goods and services increased by 18 per cent, while imports increased by 17.08 per cent, resulting in a trade surplus contribution of 19.16 per cent.

Hương emphasised the Government's commitment to achieving socio-economic development goals and highlighted the implementation of relevant resolutions and directives. Ministries, sectors and localities have been directed to focus on comprehensive solutions outlined in the action plans to drive growth and achieve the set targets.

CPI rises 3.77 in Q1

Việt Nam's consumer price index (CPI), a key measure of inflation, climbed 3.77 per cent year-on-year in the first quarter, the GSO General Director said.

Hương attributed the rise primarily to a surge in domestic rice prices. This increase mirrored a rise in export rice prices and was further fuelled by higher demand for glutinous and jasmine rice varieties during the Kitchen Gods' Day and Lunar New Year holidays. The rice price jumped 21.71 per cent annually during the quarter, pushing up the overall CPI by 0.55 percentage points.

Core inflation, which excludes volatile items like food, energy, and health and education services, remained relatively stable, rising 2.81 per cent annually in the first quarter.

Looking at monthly figures, the March CPI rose 1.12 per cent compared to December 2023 and 3.97 per cent year-on-year. However, it did see a slight decrease of 0.23 per cent compared to February.

Prices of water, electricity, education, medicines and health services recorded respective increases of 10.58 per cent, 9.38 per cent, 9.02 per cent and 6.51 per cent.

Meanwhile, those of food and dining services, education, and transportation all decreased slightly on a month-on-month basis, by 0.76 per cent, 0.29 per cent, and 0.03 per cent, respectively.

Year-on-year comparisons also revealed a 1.47 per cent decline in the cost of postal and telecommunication services.

On a different note, the prices of gold and the US dollar experienced significant increases in March, rising 22.71 per cent and 4.32 per cent year-on-year, respectively. — VNS