Optimistic signs emerge for Vietnam's economy

Thứ Năm, 23/06/2022, 14:17

COVID-19 was largely brought under control in the first 5 months of this year and the economic recovery programme was implemented thoroughly around the country, driving socio-economic development in a host of fields.

Twenty-seven export items joined the “one-billion-USD” club in the first five months of this year, as compared with only 23 seen in the same period last year, Deputy Minister of Industry and Trade Do Thang Hai revealed.

Optimistic signs emerge for Vietnam's economy -0
Optimistic signs emerge for Vietnam's economy

Vietnam’s export revenue in May increased 18.1 percent against the previous month, pushing the five-month value by 16.7 percent, he said.

The export value in the domestic economic sector expanded 21.3 percent, higher than that in the FDI sector (15.1 percent, including crude oil) which, Hai said, reflects the rapid recovery of local firms as well as the resumption of global supply chains.

He, however, noted that the enterprises faced a host of difficulties due to surging production costs, including transportation and warehousing ones, and material prices.

Moreover, FDI groups like Samsung and Electronics scaling down their production of some items given the falling demand and China’s lockdown measures have also affected Vietnam’s production and export, Hai continued.

The Ministry of Industry and Trade will work harder to help businesses optimise signed free trade agreements (FTAs) in order to speed up export and boost consumption at home, maintain contacts with China and coordinate with other ministries, agencies and localities to ensure sustainable customs clearance at border.

It will also review and propose measures to cut taxes and fees, or solutions to support firms affected by the soaring prices of certain goods, he promised.

Meanwhile, according to the General Statistics Office, industrial production was estimated to have increased 4 percent in May compared to April and 10.4 percent compared to May last year.

The signs of economic recovery were even clearer when, during the month, the number of newly-established enterprises was at the highest May level for 5 years. Similarly, foreign direct investment stood at 7.71 billion USD, up 7.8 percent year-on-year and the highest increase in the month for 5 years.

One of the highlights of May was the service industry, with the most impressive rebound seen in the tourism industry. The number of international visitors to Vietnam in the first five months totalled 365,000, or 4.5-times higher than in the same period last year. Vietnam hosting the SEA Games 31 in May greatly increased its tourism brand value.

With the achievements posted in the first 5 months, some forecasters believe that economic growth in the third quarter will be a highlight, creating momentum for annual growth to exceed the target of 6-6.5 percent and perhaps even exceed 7 percent.