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Treasury & Capital Markets
Vietnam economy expands 5.64% in first six months
GDP growth tops year-ago figure but misses government forecast amid fresh Covid-19 outbreaks
Nguyen Tuong Thuy 5 Jul 2021

Despite fresh Covid-19 outbreaks, Vietnam’s economy grew 5.64% in the first six months of 2021, much higher than the 1.82% rate reported for the same period last year, largely driven by the industry and construction sector. Gross domestic product surged 6.61% in the second quarter compared to a year earlier, and 4.65% in the first quarter, the General Statistics Office announced on June 29.

The first-half growth, however, is lower than the 5.8% forecast for the period by the Ministry of Planning and Investment late this May. The ministry estimated a full-year growth of 6%.

The General Statistics Office said the pandemic started to break out late this April in different cities and provinces with complicated and unpredictable developments, causing many challenges and risks as the country sought to curb the pandemic and sustain economic growth.

For January to June, the agriculture, forestry and fishery sector increased by 3.82%, while the industry and construction sector and the service sector expanded 8.36% and 3.96%, respectively. Vietnam’s exports rose 24.05% while imports went up 22.76% during the period.

Late this June, Singapore-based United Overseas Bank forecast the Vietnamese economy would expand 6.7% this year, much higher than the latest prediction of 6% by the Ministry of Planning and Investment.

In terms of foreign investments, the ministry said foreign investors registered US$15.27 billion for Vietnam between January and June, or 97.4% of the amount recorded in the same period last year. The total comprised of both direct and indirect investments. However, the disbursement of foreign direct investment (FDI) rose 6.8% year-on-year to US$9.24 billion.

Singapore leads the countries and territories investing in Vietnam with a total capital of US$5.64 billion, followed by Japan with US$2.44 billion, and South Korea with US$2.05 billion.

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