31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Vietnam GDP growth among world's highest in 2020: GSO
Ngoc Thuy 11:25, 2020/12/28
Vietnam records an economic growth of 2.91% - an impressive achievement amid gloomy global forecasts.

Vietnam’s GDP in 2020 grows at an impressive pace of 2.91%, the lowest in a decade but among the world’s highest, the General Statistics Office (GSO) has announced.

 Data: GSO. Chart: Ngoc Thuy

“As the Covid-19 situations remains complicated around the world, such a positive economic growth could be seen as a major achievement of Vietnam,” stated the GSO

Specifically, GDP in the fourth quarter increased by 4.48% year-on-year, the highest quarterly growth in the year, followed by the third quarter growth at 2.69%, second quarter at 0.39% and the first quarter at 3.68%.
In 2020, the sector of agriculture, forestry and fishery has expanded by 2.68%, contributing 13.5% to the overall growth; the sector of industry and construction enlarged by 3.98%, contributing 53%; and the service sector climbed by 2.34%, contributing 33.5%.

The driving forces of the economy in 2020 continues to be the manufacturing and processing with an increase of 5.82%, or 1.25% percentage points to the economy; while electricity production and distribution with a growth rate of 3.92%; water provision and waste water treatment with 5.51%. On the contrary, mining activities suffered a contraction of 5.62%, followed by crude oil of 12.6% and natural gas of 11.5%.

About the structure of the economy in 2020, the sector of agriculture, forestry and fishery made up 14.85%; the sector of industry and construction accounted for 33.72%; the service sector represented 41.63%; and product taxes less subsidies on production accounted for 9.8%.

The productivity is estimated at VND117.9 million per worker or US$5,081, up US$290 against last year.

The incremental capital-output ratio (ICOR) showed signs of improvements, going down from 6.42 in 2016 to 6.07 in 2019, averaging 6.13 in the 2016 – 2019 period and lower than 6.25 in 2011 – 2015.

In 2020, due to the impacts of the Covid-19 pandemic, business and production activities were severely impacted, resulting in a ICOR index of 14.28, averaging 7.04 in 2016-20.

ICOR explains the relationship between the level of investment made in the economy and the consequent increase in GDP. The higher the ICOR, the lower the productivity of capital or the marginal efficiency of capital.

RELATED NEWS
TAG: Vietnam covid-19 coronavirus nCoV pandemic GDP growth 2020 world highest manufacturing processing services agriculture
Other news
12:10, 2022/10/26
Vietnam's cooperative economy needs changes
It is necessary for the cooperatives and cooperative economic model to have the “determination to digital transformation, innovation, and change associated with efficiency.”
10:07, 2022/07/25
Hanoi to spend over $13 million on empowering SMEs via digital transformation
The latest decision of the local authority is applied from September 23.
09:58, 2022/58/24
Role of Hanoi and Ho Chi Minh City in tourism planning for 2021-2030
In the next stage of tourism development, good quality targeting high-end, long-stay, and high-spending visitors is believed the top priority.
11:43, 2022/43/22
Vietnam ranked 63rd in Global Index of Digital Entrepreneurship Systems
Cultural support for entrepreneurial activity is Vietnam’s notable strength.
17:29, 2022/29/20
Vietnam remains cautious about inflation risks: PM
Economic resilience is essential for Vietnam to promote growth and keep inflation under control.
17:51, 2022/51/15
Hanoi, HCMC serve as growth pillars in 2021-2030 master plan
Planning is the first step to setting up the fastest and most efficient route to achieve Vietnam’s development goals set for the 2021-2030 period.