HANOI, 18th April, 2022 (WAM) -- Vietnam's economic growth in the first quarter of 2022 was consolidated thanks to the solid performance of export-oriented manufacturing and recovering service sector, according to the Vietnam Macro Monitoring report recently released by World Bank.
According to the Vietnam News Agency (VNA), the country's GDP grew by 5.0 percent year-on-year (YoY) in Q1-2022, comparable to the growth rate in Q4-2021, yet still two percentage points below pre-pandemic rates.
Industry, construction, and services sectors grew 6.4 percent YoY and 4.6 percent YoY, respectively, contributing 4.3 percentage points to quarterly GDP growth. Growth of industry and construction was driven by strong external demand for manufactured products, while services sector performance varied across sub-sector.
Finance, banking and insurance, and information and telecommunications have been exceptionally resilient and maintained solid growth over the past two years. On the other hand, the report pointed out that accommodation and catering services were 1.8 percent lower than a year ago and well below their pre-pandemic level.
Industrial production index grew by 8.5 percent YoY in March, comparable to pre-pandemic rates, while retail sales growth accelerated from 4.1 percent in February to 9.4 percent, the second-highest growth rate since the onset of the COVID-19 pandemic. This rebound is partly due to the post-pandemic resumption of economic activities and was driven by a 10.7 percent growth in the sales of goods.
The merchandise trade balance posted a surplus of US$1.4 billion in March, while registered and disbursed foreign direct investment (FDI) remained stable amid global uncertainties related to the Russia-Ukraine conflict.
The Consumer Price Index (CPI) increased by 2.4 percent YoY in March, compared to 1.4 percent in February. This is the highest inflation rate in seven months but remains well below the 4.0 percent target.