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Vietnam shines amid global economic volatilities

Vietnam shines amid global economic volatilities

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,Containers are loaded on a ship at the Saigon port in Ho Chi Minh city, Vietnam. (AP Photo/Hau Dinh, File)

HANOI: Despite global volatilities, Vietnam’s economy has rebounded strongly this year beyond the forecasts of many international organisations, making the country one of the rare bright spots in the global gloomy picture and has the potential to become a new “tiger” in Asia.

The latest report from the General Statistics Office (GSO) showed Vietnam’s gross domestic product (GDP) growth rate in the first nine months of 2022 hit a 12-year high to reach 8.83%.

Notably, the economy expanded 13.76% in the third quarter (3Q) of 2022 compared to 7.72% and 5.05% in 2Q and 1Q22, respectively.

The 13.7% GDP expansion in 3Q22 was a record quarterly growth rate in Vietnam and surpassed the rate of 13.5% of India to become the highest in Asia this year.

The World Bank attributed Vietnam’s rebound to a recovery of exports and the release of pent-up demand following the removal of Covid-19-related mobility restrictions and, more recently, the gradual return of foreign tourists.

Vietnam’s economic growth was reported in all three key sectors, of which services increased by 10.57%, industry-construction up 9.63% and agriculture-forestry-fishery up 2.99%.

The country’s import-export turnover during the period increased by 15.1% to US$558.5bil (RM2.6 trillion) with a trade surplus of US$6.52bil (RM31bil) while total retail sales of consumer goods and services surged by 21%.

Besides, the business situation has been continually improving, with the number of newly established enterprises surging by 38.6% to more than 163,000.

Disbursement of foreign direct investment in the first nine months of this year also surged 16.2% year-on-year to US$15.4bil (RM73bil), marking a five-year record high, the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) reported.

These positive figures showed foreign-invested enterprises have been constantly recovering and expanding their production and business activities in Vietnam, which has reflected business confidence in the country’s success in maintaining macroeconomic stability, FIA said in its September report.

According to Prime Minister Pham Minh Chính, the economy has recovered very positively, with many cities and provinces nationwide reporting impressive gross regional domestic product growth in the first three quarters, including Ho Chi Minh City with 9.97%, Hanoi with 9.69%, Bac Ninh with 9.7%, Hai Duong with 10.14%, Quang Ninh with 10.12%, Hai Phong with 12.06%, Can Tho with 17.57%, Da Nang with 16.76%, Khanh Hoa with 20.48% and Bac Giang with 23.98%.

Notably, Minister of Planning and Investment Nguyen Chi Dung said the country’s high economic growth has been accompanied by stabilising the macro-economy, successfully controlling inflation, ensuring major balances of the economy and improving people’s living standards.

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