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Industrial sector to be of service   2010-05-09 - VIR

The growing industry and service sectors will be driving forces for boasting Vietnam’s economy during this year’s second quarter.

Vietnam’s overseas investment shifts to services, new markets

Hanoi’s per capita income reaches $1,880

Vietnam’s National Centre for Socio-Economic Information and Forecasting (NCSEIF) predicted that the Vietnamese economy would grow by 6.2 per cent year-on-year in the second quarter, which is about 0.4 per cent higher than first quarter growth.
“The industry and service sectors will lead economic growth in the upcoming months as the domestic and international demands are rising,” said the NCSEIF report.

According to the NCSEIF, the two sectors were forecast to grow 6.56 and 7.55 per cent year-on-year respectively in the second quarter against 5.65 and 6.64 per cent of the first three months.

The centre said the rising demands of commodities in domestic and international markets urged manufacturers to expand production though they remained facing challenges such as raw material and energy price hikes.

sector, the highest growing sector, would benefit from tourism and transportation services in the second quarter. The NCSEIF report cemented a brighter economic outlook in Vietnam. Over the past two years, Vietnamese economy has been slowed as the global economy fell into its worst recession since the 1930s. The economic growth in 2009 was only 5.32 per cent year-on-year, the lowest lelvel during the past decade.

In April, the World Bank and Asian Development Bank (ADB) forecasted a strong recovery for Vietnam. The ADB forecasted Vietnam’s economy could reach 6.5 per cent this year as targeted by Vietnamese government and 6.8 per cent in 2011. Thebank also said that the services and industrial sectors would be key driving forces for the country’s economic growth this year.

“The strengthening of external demand is set to spur manufacturing growth in both 2010 and 2011. The services sector will benefit from the projected expansion of foreign trade and increase in tourist arrivals,” ADB said in a report.

Though insisting that the economy would growth above 6 per cent in the second quarter, the NCSEIF said existing challenges like high inflation and trade deficit would still threat the macroeconomy in this quarter.

“The rising demand of investment, construction and consumption in the country and the global trend of price hike could bring high inflation and widen trade deficit in Vietnam,” said the NCSEIF report. 

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