WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Vietnam’s GDP expands 4.48% in Q1 under Covid-19 impacts
Ngoc Thuy 15:12, 2021/03/29
The GDP growth target of 6.5% for 2021 is a challenge for the country, which requires strong efforts from the government, business community and people.

The Covid-19 pandemic continued to impact Vietnam’s socio-economic performance in the first quarter of this year, leaving the country’s GDP growth in the first quarter (Q1) of 2021 at an estimated 4.48% year-on-year, according to the General Statistics Office (GSO).

 Data: GSO. Chart: Ngoc Thuy

The rate, however, remained significantly higher than the one recorded in the same period of last year, which was 3.68%, stated the GSO in its latest report.

In the January-March period, the sector of agriculture, forestry and fishery increased by 3.16%, contributing 8.34% to the overall growth; the sector of industry and construction rose by 6.3%, contributing 56%; and the service sector climbed by 3.34%, contributing 35.7%.

Manufacturing and processing continued to be the driving force of the economy with an expansion rate of 9.45%, while the mining sector contracted 8.24%.

In the industry and construction sector, the industry expanded 5.17% year-on-year in the three-month period, higher than the 4.37% growth rate of Q1/2020.

The services sector witnessed positive growth as the Covid-19 pandemic is gradually contained in Vietnam, along with positive impacts from existing free trade agreements that the country is a part of.

With a growth rate of 7.35%, finance, banking and insurance remained the fastest growing sub-component under services sector, followed by wholesale and retail (6.45%). Meanwhile, accommodation and catering services suffered a decline of 4.49% and transportation, -2.17%.

The first quarter of 2021 also saw the recovery of trading activities, as trade turnover surged by 24% year-on-year to US$152 billion, resulting in a trade surplus of US$2 billion during the period.

The GSO, nevertheless, said given the uncertainties of the pandemic situation around the world, “the GDP growth target of 6.5% is a major challenge, which requires strong efforts from the government, business community and people.”

 Among measures to push for greater economic growth, the agency called for speedy implementation of vaccination program against Covid-19, while providing the business community with better access to government support programs and accelerating disbursement rate of public investment.

RELATED NEWS
TAG: Vietnam GDP covid-19 pandemic nCoV growth manufacturing gso
Other news
11:57, 2025/02/13
Vietnam to develop small-size nuclear power plant
Vietnam's power capacity needs to expand 2.5–3 times by 2030 and 5–7 times by 2050 to keep pace with the country's projected high economic growth.
21:49, 2025/02/12
Vietnam's institutional reforms critical to achieving 2025 growth targets
The State's strong determination to identify bottlenecks and put concrete solutions in place matters a lot to economic growth.
21:16, 2025/02/11
Prime Minister reaffirms reaffirms commitment to enhancing investment climate
The Prime Minister called on the private sector to join the national effort to achieve at least a double-digit economic growth rate and contribute to the overall economic growth target.
20:34, 2025/02/10
PM visits domestic firms joining high-speed rail project
The Government will bring both local and international consultants, contractors, and the political system into the US$67 billion project.
18:08, 2025/02/09
Vietnam e-commerce sales to hit $15.4 billion in 2025
Sellers are encouraged to stay informed on economic trends, e-commerce strategies, and emerging consumer behaviors to drive continued growth.
23:16, 2025/02/08
Nearly 13,800 new jobs created in Hanoi in January
The city aims to generate 169,000 jobs in 2025, according to a recent plan by the municipal People's Committee.