Vietnam’s GDP in the first nine months expanded by 4.24% year on year, data from the General Statistics Office (GSO) showed today [September 29].

Data: GSO. Chart: Hai Yen/The Hanoi Times

For the third quarter of this year, the country’s economic growth reached 5.33% compared to the same period last year. This growth rate only exceeds the figures for 2020 and 2021, which were significantly affected by the Covid-19 pandemic, but is still seen as a “positive trend”.

Growth in the first quarter was a modest 3.28%, while the second quarter saw a slightly higher growth rate of 4.05%.

Over the entire nine-month period, the GDP  grew by 4.24%, the lowest growth in 13 years during a time when the pandemic affected the economy.

For 2023, the Government has set an ambitious target of 6.5% GDP growth, while the economy grew 8.85% last year.

The primary driver of the economy continues to be the services sector, with a 6.32% increase in value-added over the first nine months. The industrial and construction sectors, on the other hand, are struggling with challenges, particularly due to declining aggregate demand.

These sectors have only seen a modest increase of 1.65% over the same period last year, which is the lowest growth rate within the 2011-2023 timeframe.

Specifically, the processing and manufacturing industry recorded an increase of 1.98%, the lowest in the period between 2011 and 2023, contributing 0.51 percentage points. Meanwhile, the construction industry experienced a slightly higher growth rate of 6.17%, contributing 0.42 percentage points.

Trade remained a highlight of the economy during the first nine months with an estimated surplus of $21.68 billion, a significant increase from the $6.9 billion recorded during the same period last year.

However, it's important to note that both exports and imports have declined by 8.2% and 13.8%, respectively, in comparison to the same period last year.