The General Statistics Office (GSO) informs reporters about Vietnam's socio-economic development in the first quarter of 2021. (Photo: qdnd.vn)

The expansion compared with 3.8% growth in the same period last year.

The GSO said processing and manufacturing continued to be the driving force for the growth of the economy with an expansion of 9.45% while the agro-forestry-fishery sector saw strong growth thanks to high rice and fruit production, controlled African swine flu and expanded markets for wood and forestry products. GSO chief Nguyen Thi Huong said more needs to be done to achieve 6.5% growth for this year. 

"We have to continue helping businesses expand markets, providing tax incentives, reducing fees and land rent, and stimulating domestic consumption. It’s crucial to make full use of free trade agreements and penetrate new markets,” said Huong.

Meanwhile, the Consumer Price Index (CPI) in March inched up 1.16% from the same period last year, the lowest rise since 2016.

The government’s activation of aid packages for people and businesses affected by COVID-19 was among factors helping ease the pressure on the first quarter’s CPI, according to the GSO.

The Vietnam Electricity’s power bill cut in the second and fourth quarters of last year contributed to a CPI decrease of 0.24% points during the period.