HANOI, March 29 — Vietnam’s gross domestic product in the first quarter grew 5.66 per cent from a year earlier as exports boomed, government data released on Friday showed, despite higher shipping costs due to turmoil in the Red Sea.
Growth in the January-March quarter for economy was faster than the expansion of 3.41 per cent in the same period last year, but slower than the 6.72 per cent growth in the fourth quarter. First quarter numbers are generally lower because of festival holidays.
The Southeast Asian nation, a regional manufacturing hub and a key exporter of smartphones, electronics and garments, is seeking to shore up its business activities after it missed its growth target last year on weak global demand and brief power shortages. It has set a 6.0 per cent to 6.5 per cent GDP growth target this year.
The manufacturing and construction sector grew 6.28 per cent, while the services sector expanded 6.12 per cent in the quarter from a year earlier, the General Statistics Office (GSO) said in a report.
Goods exports from Vietnam grew sharply in the quarter, despite disruptions to shipping through the Red Sea caused by the Houthis’ attacks, which, according to official estimates, resulted in a 55 per cent to 73 per cent increase in costs for cargoes from the country.
Goods exports in the quarter grew 17 per cent from a year earlier to US$93.06 billion (RM439 billion), while imports were up 13.9 per cent to US$84.98 billion (RM401 billion).
Shipments of electronics rose 30 per cent from a year earlier, while smartphone exports increased 10 per cent and garments 7.9 per cent, according to the GSO.
Prime Minister Pham Minh Chinh last week reassured foreign investors that their factories will not face a repeat of last year’s power shortages, as the country is ramping up coal imports.
Vietnam’s electricity output in the first quarter grew 11.4 per cent from a year earlier to 65.5 billion kWh, according to the GSO.
— Reuters
