GDP growth in 2019 hits 7.02%, beyond the NA-set target

VN’s GDP growth in 2019 hits 7.02%, exceeds the NA-set target

During a press conference to announce socio-economic statistics of Q4 and the whole 2019 in Ha Noi on December 27, GSO Director General Nguyen Bich Lam said this is the second consecutive year that Viet Nam’s economic growth has reached over 7%, with the quality of growth increasing extensively.

The main driver of economic growth this year remained the processing and manufacturing industry (growing by 11.29%) and the market service industries (transportation and warehousing grew by 9.12%, wholesale and retail went up by 8.82%, finance-banking-insurance moved up by 8.62%), he stated.

Regarding the economic structure, the agriculture, forestry and fishery sector accounted for 13.96% of GDP, the industry and construction sector made up 34.49%, the service sector represented 41.64%, and the taxes less subsidies on production accounted for 9.91% of GDP (the corresponding structure in 2018 was 14.68%, 34.23%, 41.12%, and 9.97%).

From the perspective of using GDP in 2019, final consumption increased by 7.23% compared to 2018; accumulated assets increased by 7.91%; exports of goods and services expanded by 6.71%; and imports of goods and services moved up by 8.35%.

Regarding the quality of economic growth, in 2019, the contribution of total-factor productivity (TFP) to GDP growth reached 46.11%.

Investment efficiency improved significantly with many new production capacities supplemented for the economy. The incremental capital output ratio (ICOR) decreased from 6.42 in 2016 to 6.11 in 2017 and 5.97 in 2018, and was estimated to reach 6.07 in 2019. The ICOR reached 6.14 on average during the period of 2016-2019, lower than the level of 6.25 in the period of 2011-2015.

According to Lam, the slowdown in the global economic growth, the trade tensions between the United States and China, and the geopolitical issues have significantly increased the instability of the global trade system, while considerably affecting business confidence, investment decisions and global trade.

In the context that the unpredictable fluctuations in the international financial-monetary market, as well as the complicated developments in oil prices, have affected credit growth and market expectations, the GDP growth rate of 7.02% has affirmed the timeliness and efficiency in the Government and Prime Minister’s direction and management, and the efforts of all levels, sectors and localities in implementing the socio-economic development plan in order to meet and exceed the growth target set for 2019.

By Vien Nhu