(VOVWORLD) -Vietnam’s gross domestic product (GDP) grew by an estimated 5.73% in the first half of this year. The first-quarter growth was 5.15 percent while the second quarter’s was 6.17. These results were credited to the government’s energetic efforts to improve the business climate.
Vietnam’s economy rebounded in the first half of the year, particularly in the second quarter. Export revenues reached nearly 98 billion USD, 19% more than in the same period last year. Meanwhile imports totaled 100 billion USD, 24% higher than last year. The consumer price index (CPI) increased 4.15 percent in the period, while 61,000 enterprises were formed.
Nguyen Bich Lam, General Director of the General Statistics Office (GSO), says: “The agriculture sector resolved issues pending from previous years, and the manufacturing and processing industries have improved. The construction and service sectors recorded high growth, thanks to strong government management and active involvement by the business community.”
This is not to say that the economy has had no shortcomings in the past 6 months. Dang Duc Anh, Head of the Macro-economic Analysis and Forecast Board of the Ministry of Planning and Investment, said: “The economy has been depending largely on industry, which is heavily influenced by foreign investment. If Samsung adjusted its production plan, it would immediately impact our manufacturing and processing sectors. Private businesses are large in number but contribute too little to the GDP.”
Reaching the 6.7% growth target
The GSO says that in order to obtain a growth of 6.7%, GDP in the second half of the year must be above 7.4%. Nguyen Duc Thanh, Director of the Institute for Economic and Policy Research, talked to VOV about how to achieve a growth of 6.5% in the 2016 to 2020 period. “Vietnam should continue to improve its domestic business environment to help businesses reduce production costs and create momentum for growth in 2017 and beyond. We are implementing reform measures but it will take time to see the fruits.”
Although GDP growth in the 1st half was below the target, the government is determined to reach the target of 6.7% for 2017, which is considered a pivotal year in national economic reform and growth model restructuring.