(VOVWORLD) -Vietnam’s GDP grew 6.42% in the first half of this year. Production and trade saw strong recoveries, contributed strongly to national economic growth, and promised greater growth in the second half and next year.
 Electronic component manufacturing at the Japanese Canon Factory in Pho Noi A Industrial Park, Hung Yen province (Photo: Pham Kien/VNA) |
According to the General Statistics Office, growth was recorded in many industries. Production, trade, and industrial growth were strong in 56 of 63 localities. Processing and manufacturing emerged as a significant growth driver, with an 8.67% rate.
Pham Tuan Anh, Deputy Director General of the Industry Department of the Ministry of Industry and Trade, attributed the strong growth to public investment capital disbursement, foreign direct investment attraction, and key industrial project implementation.
He said the Government, ministries, sectors, and localities have worked closely with business associations to make good use of free trade agreements to which Vietnam is a signatory as the world market recovers, and export orders received by Vietnam's key export industries have risen.
“In addition, the capacity of domestic enterprises has improved thanks to the Government's support policies. These are new, positive signals, and the exports of domestic companies have been almost twice those of FDI companies,” Tuan Anh added.
To continue to support production and trade activities, the Government recently proposed extending the 2% value-added tax reduction by six months to the end of the year. This will help reduce production costs, lower product prices, and increase businesses’ recovery and production expansion.
Nguyen Thi Diem Hang, Deputy Chairwoman of the Vinapharma Group, said, “All businesses are benefitting from the reduction of taxes, especially the value-added tax. That greatly cut production and business costs, directly benefitting consumers and end-users and stimulating consumption. Businesses can use the increased capital to expand production.”
But experts say that, amid the current global economic uncertainties, Vietnam’s economic recovery in the first half wasn’t as good as expected.
 Pham Tuan Anh, Deputy Director General of the Industry Department of the Ministry of Industry and Trade (Photo: VNA) |
Deputy Director General of the Industry Department Pham Tuan Anh proposed solutions to sustain production and trade growth momentum in the medium and long term.
“It’s necessary to continue to deploy business support policies that reduce difficulties and obstacles, especially for key export industries. At the same time, it’s important to put into operation new production projects to boost exports and domestic consumption,” said Tuan Anh.
To find markets for their products, many businesses have promoted both export activities and domestic market expansion and have restructured products to meet market demand. Many have conducted digital transformation to reduce costs, increase competitiveness, and boost sustainable production growth. They have focused resources on acquiring new equipment and technology, expanding domestic supply networks, reducing dependence on foreign suppliers, improving quality, lowering product prices, and consolidating market share.