Vietnam Records Highest Economic Growth in a Decade – Guess the #1 Industry?
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Hue citadel, Vietnam © Arno Maierbrugger
Vietnam’s economy grew by 7.08 per cent in 2018, the fastest rate in the past eleven years and beating the target of 6.7 per cent, the General Statistics Office (GSO) has announced, according to Nhan Dan newspaper.
A breakdown of sectors shows that agriculture grew by 3.76 per cent and contributed 8.7 per cent to GDP growth, while industry and construction expanded by 8.85 per cent and made a 48.6 per cent contribution to the overall growth. The services sector grew by seven per cent and contributed 42.7 per cent, GSO Director Nguyen Bich Lam said on December 27.
The agriculture growth rate was the highest in seven years and came as a result of restructuring efforts in recent years, especially in plant cultivation and aquaculture. Manufacturing continued to be the main growth driver of the Vietnamese economy, growing by a strong 12.98 per cent, though lower than the figure of 2017 but still higher than during the 2012-2016 period.
Such figures demonstrate that the economy is no longer reliant on the extraction of natural resources when 2018 is the third consecutive year to witness a decline in the mining industry, the GSO said.
Services in 2018 also grew at a faster pace than during the 2012-2016 period with retail, wholesale, financial services, accommodation, catering services and transport all posting decent growth.
According to the GSO, Vietnam’s GDP in the fourth quarter expanded by 7.31 per cent compared to the same quarter last year.
The country’s GDP in 2018 was estimated at $238 billion, doubling the figure in 2011. The GDP per capita in 2018 rose by $198 from the previous year to $2,587.