(VOVworld)-Although Vietnam’s economy had no major breakthroughs in 2016, it managed to maintain a stable growth thanks to careful government management. We now review Vietnam’s economic picture last year.

Vietnam's industrial production index of the processing and manufacturing sector has set records in recent years. (Photo: VNA)

Vietnam’s GDP grew 6.21% for the year, short of the 6.7% target set by the National Assembly, mainly due to natural disasters, drought, and saline intrusion in the Mekong River Delta crippling agricultural production. Another reason was falling exports and falling prices of crude oil in the global market.

In that context, service, industry, processing, manufacturing, and construction posted relatively high growth. The highlight was the processing and manufacturing industry, according to Pham Dinh Thuy, Head of the Industrial Statistics Department of the General Statistics Office.

“The industrial production index of the processing and manufacturing sector has set records in recent years. The industry’s steady production contributed significantly to this year’s economic growth,” Thuy added.

In 2016 Vietnam signed a number of milestone free trade agreements. Last year saw a boom in the amount of registered and expansion capital, and capital disbursement for FDI companies, who contributed 70% of Vietnam’s export growth. Vegetable and fruit processing also saw significant growth last year, thanks to the application of advanced preservation techniques and safe production standards.

Economist Nguyen Minh Phong said: “Our success was due to changes in our strategy in the direction of national integration to create appropriate institutions. Vietnam has signed many bilateral agreements on investment protectionism and trade encouragement and 11 FTAs to create a fairer environment in our trade with more than half the countries in the world.”