Vietnam’s economy expanded by 7.08 percent in the first six months of 2018, the highest in eight years, primarily driven by the growth in services and industry-construction sectors. In addition, exports and foreign direct investment (FDI) also witnessed higher growth in the first half of 2018 (H1), compared to the same period last year. In spite of a forecast of a slowdown in the second half of the year, the government is confident of achieving its annual target of 6.7 percent.
GDP
In the first half of the year, the economy grew by 7.08 percent, fastest since 2011. The first quarter had witnessed higher growth at 7.45 percent, while growth in Q2 had slowed down to 6.79 percent.
Agriculture, forestry, and fishery grew by 3.93 percent in H1, contributing 9.7 percent to the overall growth. The industry and construction sector expanded the fastest at 9.07 percent during the same period, contributing 48.9 percent to the overall growth, while the services sector grew by 6.9 percent, contributing 41.4 percent to the general growth rate.
Economic structure
The services sector had the highest share in GDP in H1, at 41.82 percent, followed by industry and construction at 33.78 percent. Agriculture, forestry, and fishery represented 14.15 percent of the GDP, while taxes less subsidies on production accounted for 10.25 percent.
Agriculture, forestry, and fishery
The agriculture, forestry, and fishery sector witnessed the highest growth since 2012. The fishery sector grew the fastest at 6.41 percent, highest since 2011, followed by forestry at 5.12 percent. Agriculture grew by 3.28 percent, and contributed the highest to the overall growth rate compared to fishery and forestry, at 0.45 percent.
Industry and construction
Industry grew by 9.28 percent, compared to the same period in 2017. Manufacturing grew the fastest in seven years at 13.02 percent. Mining and quarrying witnessed a negative growth at 1.3 percent, while the construction sector maintained its momentum and grew by 7.93 percent.
Services
In the first six months, the services sector grew by 6.9 percent, highest in seven years. Wholesale and retail sales, which continues to be the largest contributor to the growth rate, expanded by 8.21 percent in H1, while the finance, banking, and insurance sector grew by 7.58 percent.
Accommodation and catering services grew by 7.02 percent, followed by transportation and warehousing at 7.67 percent and real estate at 4.12 percent.
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