Positive signs for the economy in Q1

Entrepreneurial business startups and new venture capital in the reviewed period witnessed exponential growth, according to the statistical agency.

GDP up 4.96%

GDP increased by 4.96% in the first quarter of this year, higher than the comparable period for the past two years (4.76% in 2013 and 4.75% in 2012).

The three sectors experiencing higher growth included services (up 5.95%), industry and construction (up 4.69%) and agro-forestry and fisheries (up 2.37%).

The services sector, the engine driving the country’s growth broke down into retail and wholesale services (up 5.61%), stay, food and drink services (up 7.58%) and financial, banking and insurance services (up 5.91%).

The Index of Industrial Production (IIP) increased by 5.2% while manufacturing and processing industry surged by 7.3%.

The employment rate rose by 4.1% in the industry sector, 3.8% in non-State owned enterprises, 6.4% in the foreign direct investment (FDI) sector, and 1.7% in State-owned enterprises.

Exports up 14.1%

Three-month export earnings rose 14.1% to US$33.3 billion. Products attaining high export growth include telephone handsets and components, means of transport, tools, footwear and seafood.

Imports were estimated at US$32.3 billion, a year-on-year increase of 12.4%. The high import value, mostly for industrial production, shows the economy is continuing its upward trend reinforced in the previous quarter.

Despite the high import growth, Vietnam still enjoyed a trade surplus of US$1 billion in Q1, or 3% of the country’s total export value.

The foreign direct investment sector produced an impressive performance in the reviewed period, with US$3.9 billion recorded in its trade surplus.

4,622 businesses resume operation

Approximately 4,622 businesses resumed operations in the first quarter, an increase of 48.9% against the same period last year.

Q1 also saw 18,358 newly-registered businesses with a combined capitalisation of VND97,983 billion, up 16.9% in number and 23.4% in capital.

Around 16,745 businesses ceased operations or were dissolved, up 9.6%.

Judging from positive signals in the past three months, the GSO suggests Vietnam go ahead with flexible fiscal and monetary policies to contain inflation and stabilise the macro-economy.

In addition, it says the banking restructuring should be accelerated in a healthy, effective and transparent manner, helping to deal with non-performing loans, increase liquidity, and create conditions for businesses to expand investment and production.