Vietnam: Economic activity accelerates in Q3
October 3, 2016
In Q3 2016, GDP expanded 6.4% over the same period of the previous year, according to data released by the General Statistics Office (GSO) of Vietnam. The reading came in above the 5.8% expansion recorded in Q2, which had brought growth in H1 to 5.6%. In the first nine months of this year, the economy grew 5.9% over the same period last year, which was below the 6.5% expansion recorded in the same period of 2015.
A breakdown by sectors of national accounts data released by GSO is only available on a cumulative basis. Agricultural production expanded 0.7% in the January-to-September period, which marked a notable improvement from the 0.2% contraction seen in the first half of this year. Vietnam’s agricultural sector has been hard-hit by a prolonged drought and salinization of the Mekong river delta, the country’s most important agricultural region, which slashed the sector’s output in the first half. Growth in industry picked up from a 7.1% expansion in H1 to a solid 7.5% increase in the first nine months of the year. The reading was supported by double-digit growth in manufacturing and water supply, which more than offset a contraction in mining and quarrying. The service sector accelerated from a 6.3% rise in the first semester to 6.7% in the January-to-September period, boosted largely by buoyant wholesale and retail trade.