Despite increased shipping costs as a result of the unrest in the Red Sea, Vietnam’s gross domestic product expanded by 5.66% in the first quarter of this year due to a surge in exports, according to government figures released on Friday.
The economy grew by 6.72% in the fourth quarter of last year, outpacing the 3.41% growth during the same period in the previous year. However, the growth rate was quicker. Numbers for the first quarter are typically lower due to festival holidays.
The Southeast Asian country, serving as a hub for manufacturing in the area and a major exporter of electronics, clothing, and cellphones, is striving to bolster its commercial operations. Transitioning from a setback in 2017, caused by sporadic power outages and sluggish global demand, Vietnam aims to enhance its economic performance. This year, it plans to boost the GDP by 6.0% to 6.5%.
A report by the General Statistics Office (GSO) indicates that the services sector rose 6.12% during the quarter compared to a year earlier. Meanwhile, the manufacturing and construction sector climbed 6.28%.
Despite the Houthis’ attacks disrupting shipping via the Red Sea, Vietnam’s goods exports increased significantly during the quarter. Official estimates indicate that this led to a 55%–73% increase in cargo prices from the nation.
During the quarter, goods exports surged by 17% to $93.06 billion compared to the previous year. Simultaneously, imports rose by 13.9% to $84.98 billion, resulting in a trade surplus of $8.08 billion.
The GSO reports a 30% surge in electronics shipments from a year ago. Additionally, exports of smartphones rose by 10%, and clothing by 7.9%.
According to the GSO, retail sales increased 8.2% from January to March and consumer prices increased 3.97% from a year ago. Industrial production also increased 21.7% during the quarter compared to the previous year.
This week, Prime Minister Pham Minh Chinh instilled confidence in international businessmen by increasing the nation’s imports of coal. He assured them that the electricity shortages that hit their companies last year would not recur.
Vietnam produced 65.5 billion kWh of power in the first quarter of this year, up 11.4% over the same period last year, according to the GSO.
Click here for more news on Finance.