Vietnam’s economic growth in the second quarter fell to its slowest pace in decades given the impact of the coronavirus pandemic.
Gross domestic product in the April-June period grew very slightly at 0.36% from a year earlier, down from 6.73% in the same period last year, the government’s General Statistics Office (GSO), said in a statement on June 29.
“The complicated development of the COVID-19 pandemic on the globe has left a tragic hit on all socio-economic aspects,” the GSO said.
The services sector in the second quarter contracted 1.76% from a year earlier, while the industrial sector rose 1.38% and the agriculture sector was up 1.72%, the GSO said.
Vietnam is seeking to resume economic activities after recording only 355 COVID-19 cases (mostly of immigrants into the country) and no deaths caused by the virus. Vietnam has not seen any community infections whatsoever for more than two months.
IMF forecast last month Vietnam’s economic growth will slow to 2.7% in 2020, but Prime Minster Nguyen Xuan Phuc said his government will try to keep growth above 5% although this seems unlikely,
According to the GSO, Vietnam’s exports in the first half of this year fell 1.1% from a year earlier to $121.21 billion, while imports were down 3.0% to $117.17 billion, resulting in a trade surplus of $4.04 billion.
The nation’s consumer prices in June rose 3.17% from a year earlier, it said. Average consumer prices in the January-June period rose 4.19%.
Vietnam’s industrial output in June rose 7.0% from a year earlier, the GSO added.
Overall, the picture does not look so dim compared to the rest of the world and recovery is expected to take place in the 2nd half of the year.