On the morning of June 29th, the General Statistics Office (Ministry of Planning and Investment) held a press conference to announce the economic and social statistics for the second quarter and the first six months of 2020. For the second quarter alone, Vietnam's GDP growth rate is estimated at 0,36%, the lowest in the last 10 years.However, this figure is higher than VEPR's previous forecast of negative growth in the second quarter.
Due to the impact of the Covid-19 pandemic, the gross domestic product (GDP) in the first six months of 2020 is estimated to have increased by 1,84%. This is the lowest growth rate in the period 2011–2020.
Regarding the economic structure in the first six months of the year, the agriculture, forestry, and fisheries sector accounted for 14,16%; the industry and construction sector accounted for 33,44%; the service sector accounted for 42,04%; and product taxes less product subsidies accounted for 10,36%.
Agricultural production in the first six months of the year faced many difficulties due to drought, early saltwater intrusion, and although African swine fever was under control, restocking remained slow. Aquaculture production continued to face challenges due to a sharp decline in exports and falling prices for raw shrimp.
Specifically, the agriculture, forestry, and fisheries sector increased by 1,19%, contributing 11,89% to overall growth; the industry and construction sector increased by 2,98%, contributing 73,14%; and the service sector increased by 0,57%, contributing 14,97%.
Industrial growth in the first six months of the year reached 2,71%, of which the manufacturing industry increased by 4,96%, lower than the growth rate in the same period of the past 10 years; the electricity production and distribution industry increased by 3,04%; and the water supply and waste treatment industry.
Regarding the use of Vietnam's GDP in Q2 2020, final consumption increased by 0,69% compared to the same period in 2019; asset accumulation increased by 1,93%; total import and export turnover of goods reached US$238,4 billion, a decrease of 2,1%.
According to the General Statistics Office, major economies such as the United States, Japan, and the European Union are also facing a deep economic recession, the worst in decades, with global trade continuously declining and supply chains disrupted.
In addition, the ongoing US-China trade war, increased political tensions between the US and Iran, internal disagreements within the Organization of Petroleum Exporting Countries (OPEC), and tensions on the Korean Peninsula have all negatively impacted Vietnam's economy.
The government and the Prime Minister prioritized epidemic prevention and control, sacrificing economic interests to ensure the lives and health of the people. This is the foundation for the economy to continue to grow and avoid negative growth.
