Vietnam’s economy is on a positive recovery momentum

Economy good first quarter, up over 5%

The remarkable socio-economic data in the first quarter was announced by the General Statistics Office this morning (March 29).

More than 5% is the highest growth rate of the first quarter in the past 3 years, also the period when the economy was greatly impacted by the COVID-19 epidemic.

In the first quarter of 2022, most industries and fields are in the trend of recovery and growth again. (Illustration image – Photo: Investment Newspaper)

In which, the largest contribution to GDP in the past 3 months was industry and construction with a growth rate of 6.38%; followed by the service sector which also regained the growth momentum of 4.58%; while agriculture, forestry and fishery increased by 2.45%.

As can be seen, in the first quarter of this year, most industries and fields are in a trend of recovery and growth.

Stable macro-economy, low inflation, low exchange rate… have helped Vietnam continue to be an attractive destination for foreign investors.

Realized FDI in the first quarter reached over $4.4 billion – the highest increase of the first quarters in the past 5 years. This also means that more industrial parks, processing and manufacturing plants will be formed from capital sources of foreign investors.

“In the first quarter, it is surprising that the number of investors interested in DEEP C in Quang Ninh and Hai Phong has doubled. Currently, we are working with many big companies around the world who want to double the investment scale compared to the past.The most positive thing is the resumption of dialogue with potential investors.The achievements of epidemic control and vaccination in Vietnam are a condition for us to develop new projects. normal business operations,” shared Mr. Bruno Jaspaert, General Director of DEEP C Hai Phong Industrial Park.

“Implemented foreign investment capital is 4.4 billion USD, the highest in the past 5 years, showing that we still retain investors, reflected in their increase in capital in our country’s market.” Ms. Nguyen Thi Huong, General Director of General Statistics Office, commented.

According to the General Statistics Office, the steady increase in the industrial production index over recent months shows the stability in production activities, workers, and the confidence of businesses and foreign investors.

Generally, in the first quarter of this year, the index of industrial production increased by 6.4% and concentrated in industries such as textiles and garments, footwear, electrical and electronic equipment…

“We consider the first quarter to be the period when factories have returned to full capacity thanks to the Government’s timely economic stimulus program. The recovery will be more clearly seen at the beginning of the quarter. 2 abundant orders and partners reshaping the production chain. Growth from 6.5% in Vietnam is very positive this year,” said Mr. Tim Leelahaphan, economist in charge of Thailand and Vietnam. South, Standard Chartered Bank, review.

According to international organizations and investors, the Government’s Resolution 11 issued earlier this year with tens of trillions of VND in preferential capital to support people and businesses… shows that the Government has looked the right time to launch unprecedented drastic support measures to support the economic recovery.

The price level continues to be controlled

One of the bright spots of the economy in the first quarter was that inflation was strictly controlled, thereby reducing negative impacts from the sharp increase in prices of raw materials, fuel and input materials in the world on the economy. economy and life of the people in the country.

Generally, in the first quarter, the consumer price index (CPI) only increased by 1.92% over the same period last year. This is a lower increase compared to the first quarter of the past 5 years. It is the well-controlled inflation that has stabilized the macro-economy, thereby supporting the recovery momentum for businesses and the whole economy.

Many retail chains and supermarkets have begun to receive offers to adjust prices from suppliers, but they still find ways to stabilize the market.

Currently, the domestic price level is still basically under control. (Illustrated photo – Photo: VNA)

“In the past time, we have received many offers to adjust prices from suppliers. In such a context, we have actively negotiated and worked with partners to delay this price increase. “, Mr. Dam Duc Anh, Director of Winmart Nguyen Chi Thanh Supermarket, said.

Managing to stabilize the market is what many businesses do at the moment to retain customers and maintain the purchasing power of consumers. This combined with the fact that Vietnam is a self-sufficient country in terms of food and has an abundant supply, along with great efforts in management by the Government, which helped reduce the number of essential foods in the first quarter. 1.2% year-on-year and contributed to the decrease in CPI by 0.26 percentage points.

In the first quarter socio-economic statistics report, educational services and especially housing rental prices decreased by 15.14% over the same period last year. This also contributed to lower CPI.

According to the General Statistics Office, the domestic price level is still basically under control, but inflation pressure in the remaining months of the year is quite large.

“We assess this year’s inflation pressure will come from both the supply side and the demand side. On the aggregate demand side, the world economy is currently in the process of recovering and countries also launching economic support packages will At home, the increase in demand for tourism, entertainment activities, and food will increase consumer prices,” said Ms. Nguyen Thu Oanh, Director of the Price Department, General. Bureau of Statistics, said.

“The current context shows challenges not only for Vietnam but many other countries, which is the balance between economic growth and price stability. We assess that the State Bank needs to continue to remain the same. interest rates. We expect Vietnam’s recovery to accelerate markedly from the end of the first quarter. Growth forecast is 6.7% for 2022 and 7% for 2023,” said Ms. Michele Wee, General Director Standard Chartered Bank Vietnam, commented.

According to the General Statistics Office, for many years, the month after Tet holiday, the consumer price index (CPI) usually decreases due to the decrease in shopping and investment demand of people and businesses. However, March of this year alone saw a CPI increase of 0.7%, the highest level in a decade.

This fact shows that the pressure on consumption of goods, services and investment will increase in the coming months. Therefore, one of the priorities right from the beginning of the second quarter is to continue to promote control of prices, markets and ensure the circulation of goods, as well as promote domestic production to move towards self-sufficiency in supply. domestic raw materials, fuel and materials, thereby limiting the impact of world price increases on the Vietnamese market.

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