Vietnam’s Economy Shows Resilience with 5.66% GDP Growth in Q1
Robust Growth Despite Red Sea Turmoil
Vietnam’s gross domestic product grew by 5.66% in the first quarter, driven by booming exports despite higher shipping costs due to turmoil in the Red Sea. This growth outpaced last year’s 3.41% and was slightly slower than the previous quarter’s 6.72%, typical for Q1 due to festival holidays.
Focus on Manufacturing and Exports
Vietnam, known for its manufacturing prowess in smartphones, electronics, and garments, is aiming for 6.0% to 6.5% GDP growth this year. The manufacturing and construction sector expanded by 6.28%, while the services sector saw a 6.12% increase, according to the General Statistics Office.
Strong Export Performance
Despite disruptions in Red Sea shipping, Vietnam’s goods exports surged by 17% to $93.06 billion, with electronics, smartphones, and garments leading the way. Industrial production also rose by 5.7% in Q1, indicating a robust performance.
Focus on Energy and Infrastructure
Prime Minister Pham Minh Chinh reassured investors of no repeat of last year’s power shortages as Vietnam boosts coal imports. The country’s electricity output grew by 11.4% to 65.5 billion kWh in the first quarter, supporting economic activities.
Optimistic Outlook Despite Risks
Economic adviser Can Van Luc expressed confidence in Vietnam meeting its GDP growth target, citing a strong recovery in demand. However, external risks like geopolitical tensions and climate change remain, highlighting the need for ongoing improvements in the business environment.
