Vietnam economy continues recovery with 5.33% growth in Q3

By Tri Duc
Fri, September 29, 2023 | 10:32 am GMT+7

Vietnam’s economy continued its recovery with GDP growth of 5.33% year-on-year in Q3/2023, accelerating from 3.28% posted in Q1 and 4.05% in Q2.

January-September growth reached 4.24%. This figure is lower than the same periods from 2011 to 2022, except for 2.19% in 2020 and 1.57% in 2021, the General Statistics Office (GSO) reported on Friday.

Between January and September, economic growth was driven by a 6.32% increase in the services sector, 3.43% in agriculture-forestry-fisheries, and 2.41% in construction-industry.

Regarding the composition of the economy, the service sector accounted for 42.72%, the construction-industry sector 37.16%, the agriculture-forestry-fisheries sector 11.51%, and net product tax minus product subsidy 8.61%.

A corner of Hanoi with high-rise buildings. Photo courtesy of Dan Tri (People's Intellectual) newspaper.

A corner of Hanoi with high-rise buildings. Photo courtesy of Dan Tri (People's Intellectual) newspaper.

The GSO pointed out the global economy faced various challenges in the first nine months, including decreased aggregate demand, high inflation, tightened monetary policies, all-time-high public debt, climate change and natural disasters, the Ukraine-Russia conflict, and others.

Amid global issues, Vietnam has adapted to the situation by reducing the loan interest rate, stabilizing the foreign exchange market, pushing public investment, easing e-visa policies, cutting tax rates, and aiding the real estate market, the GSO added.

Core inflation at 4.49%

Vietnam’s consumer price index (CPI), an indicator of inflation, increased 3.66% year-on-year in September and 3.12% versus December 2022. As a result, the January-September CPI grew 3.16% year-on-year. Core inflation was 4.49%.

The GSO noted that the CPI in the transportation sector rose 1.21%; housing and construction materials 1.12%; food and restaurants 0.73%; apparel-textile and footwear 0.19%; home appliances 0.12%; beverage and tobacco 0.11%; medicine and healthcare services 0.07%; culture, tourism, and entertainment 0.06%; and other goods and services 0.17%.

The only sector that saw prices decrease was telecommunication-postal services with 0.23%.

The GSO stressed that major factors affecting inflation were air fares rising 71.56% due to higher fuel prices and higher demand with the year-end holidays approaching, education costs up 7.28%, housing and construction materials increasing 6.73% due to higher input prices, food prices rising 4.85% partly due to higher rice prices in line with a global trend, and consumer electricity costs going up 3.48% after state utility EVN raised the retail price in May.

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