Vietnam’s nine-month GDP growth highest in 12 years

Vietnam’s economic growth of 8.83% year-on-year in the first nine months is the highest recorded in 12 years.

The figure for the same period in 2021 and 2020 - both pandemic years, was 1.42% and 2.12%, respectively. The economy expanded 2.58% last year.

In the nine months of this year, the service sector grew 10.57%, followed by the manufacturing and construction sector (9.44%), and the agricultural sector (2.99%), according to the General Statistics Office (GSO).

Vietnam's Jan-Sep exports increased 17.3% from a year earlier to $282.52 billion. The U.S. remained the largest buyer at $86.3 billion.

Total imports were estimated at $276 billion, up 13% year-on-year, with China the largest supplier at $91.6 billion.

Trade surplus hit $6.52 billion, a big leap compared with a trade deficit of $3.44 billion in the same period last year.

Disbursed FDI reached $15.4 billion in the year to September 20, up 16.2% year-on-year, the highest since 2018.

The country’s third-quarter GDP growth was 13.67% thanks to vigorous manufacturing and exports. The manufacturing and construction sector grew 12.91% year-on-year, while the figures for the service and agricultural sectors were 18.86% and 3.24%, respectively.

"Business activities were robust in the third quarter, especially compared with the same period last year when several parts of the country were under strict pandemic lockdown," the report said, explaining a low base effect.

The consumer price index (CPI) in September rose 4.01% from December last year, the GSO said. Inflation in the nine-month period was 1.88%.

The country is facing rising inflation pressure following the U.S. Federal Reserve’s interest rate hike last week. As a result, the State Bank of Vietnam increased its regulatory interest rates on September 23. The government has been seeking to limit inflation to 4% this year.

Vietnam’s economic expansion can hit 7.2% this year and 6.7% next year, the highest in Southeast Asia, the World Bank said Tuesday. The WB’s East Asia & Pacific economic update revised up Vietnam’s GDP forecast from 5.8% in early June. It projected the country's CPI at below 4% this year, which is the State Bank’s target.

On September 21, the Asian Development Bank put Vietnam’s growth prediction at 6.5% this year and 6.7% next year on strong economic fundamentals, key to fast recovery. The 2022 figure is the highest in Southeast Asia and equals the Philippines'.