GDP grew better in the second quarter

The  socio-economic data of the first half of 2017 released by the Vietnam General Statistics Office (GSO) on June 29 showed that the Vietnamese economy grew 5.15% in the first quarter and 6.17% in the second quarter for  a combined GDP growth rate of 5.73% of the first six months of 2017. Agriculture, forestry and fishery increased 2.65%, contributing 0.43 percentage points to the GDP growth rate. The industrial and construction sectors grew  5.18%, contributing 2 percentage points. The service sector rose  by 6.85%, generating 2.59 percentage points.

 

 “The economy advanced considerably in the second quarter, achieving the highest growth rate since 2011.  In addition, the economy has been absorbing a considerable capital,” said Nguyen Bich Lam, the General Director of GSO.  Since 2011, the economic growth  rate  difference between quarter I and quarter II is 0.3 percentage point on average. However, this year, the difference is more than 1 percentage point. Despite moderate economic growth,  for the annual growth target of 6.7% to be achieved, the national GDP in the second half of 2017 will have to grow at least 7.4%, a growth rate never achieved in the past,  according to the Director of the System of National Accounts Department Ha Quang Tuyen. “This is a challenge for the economy. But with the drastic leadership of the Central Government and the active participation of other agencies, departments and citizens, the targeted GDP at 6.7% may be feasible,” said Tuyen.
Price of Healthcare and Education Drove CPI up
 
As reported by theGSO, prices of healthcare and education rose by 22.44% and 23.44% respectively, driving the CPI of the first six months up  4.15%. Furthermore, the minimum wage has increased since January 1, 2017, so the prices of some services such as  electronic appliances repair and house keeping rose  3 to 8% compared to those of the same period last year.

Market’s factors also put pressure on CPI in the first 6 months. Prices of drinks, cigarettes and clothes became more expensive during the Tet Holiday; gas price has been adjusted in conjunction with  upheavals in the world market; the increased demand for travel has made travelling price soar up; among other factors.

However, the consumer price index in June 2017 decreased by 0.17% in comparison to the previous months, in which 3 out of 11 categories of commodities and services  such as transport, food and catering services and telecommunication have experienced  price decline. Meanwhile, the remaining 9 groups saw a slight increase.
Other factors also contributed to restrain  CPI increase  such as the fall of 1.74% in food price, leading to the overall decrease of CPI at 0,39%. The price of pork also downed 23,2% due to surplus in supply and the pork import  restriction from China.

As stated by the GSO, the core inflation in June rose 0.1% from the previous month and 1,29% against the same period last year (excluding food and fresh food stuff, energy and state-controlled services such as healthcare and education). The average core inflation rate in the first 6 months of 2017 is 1,52%, lower than the predicted rate of from 1.6-1.8%, showing the efficient and stable monetary policy, said the Director General of GSO Nguyen Bich Lam.