Vietnam’s gross domestic product (GDP) is estimated to have grown 7.9 per cent in January-June, the highest rate over the past five years, said the Minister of Plan and Investment Vo Hong Phuc.
Construction, industry and service sectors posted high growth rates, however, a number of products in these sectors, which have high production value and make large proportion in GDP, increased slowly or even declined, Phuc said. Electricity production increased only 13.6 per cent in the first five months and crude oil production fell 2.3 per cent on year.
Agricultural production dealt with difficulties because of the unfavorable weather and constant epidemics.
The increase in prices of oil and gas, cement, electricity, coal, steel and fertilizer pushed up the costs of inputs, slowing down the economic growth.
The trade deficit in the first half of the year rose sharply, accounting for 17.1 per cent of export turnover due to the increasing imports of devices, machines and productive raw materials.
The country still saw the slow progress of implementation and disbursement for projects, meanwhile the price of constructive materials went up, Phuc said.
In the first six months, the allocation of state budget capital is estimated to account for 30 per cent of the annual plan, of the government bond capital for 11.6 per cent and of the credit capital for development investment for 20 per cent.
Vietnam’s GDP is expected to grow 8.5 per cent in 2007 as planed, if it expands over 9 per cent in the rest of the year, the minister said.
A state media reported Monday that Vietnam’s two biggest cities, Ho Chi Minh City and Hanoi, both also witnessed high growth rate of 11.2 per cent in the first six months. (VNA, Vietnam Economic Times)
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