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Inflows of foreign direct investment (FDI) have shone a spotlight on the country’s economic growth in the first quarter of this year, featured by the attraction of many large-scale and high-tech projects.
Registered and additional FDI touched US$5.1 billion in the first quarter of 2019, up 30.9 per cent on year.
Mai Tien Dung, Minister-Chairman of the Government Office, made the remark during an April 2 press briefing highlighting the outcomes of the Government’s annual March meeting.
Statistics released from the Foreign Investment Agency under the Ministry of Planning and Investment point out that the total registered, additional, and shared capital of FDI investors leaped by 86.2 per cent on year to US$10.8 billion, hitting a peak over the past three years. Of which, the registered and additional FDI touched US$5.1 billion, up 30.9 per cent on year.
FDI disbursement soared by 6.2 per cent to US$4.12 billion during the reviewed period.
The chairman noted that FDI inflows are forecast to face a range of unpredictable developments that could occur in the global economy in the future.
Local investment and business climate improved considerably during the year’s first quarter, with the number of newly-established businesses reaching the highest level seen in the past five years.
Chairman Dung stressed that the number of newly-established businesses and those preparing to restart their operations exceeded 43,500 in the reviewed period. Of this figure, 28,451 were newly founded, a hike of 6.2 per cent.
According to the General Statistics Office of Vietnam (GSO), the first quarter of 2019 saw GDP value surge by an estimated 6.79 per cent on year, much higher than the ratios seen in the first quarter of the years between 2011 and 2017. Meanwhile, efforts to maintain macroeconomic stability and curb inflation continued to yield impressive results.
The country’s economic growth in the three-month period was largely driven by the processing and manufacturing sector which enjoyed growth levels of 12.35 per cent. By contrast, the mining industry suffered a negative growth rate of 2.2 per cent.
Agro-forestry-aquatic production in particular saw a growth rate of 2.68 per cent, accounting for 4.9 per cent of GDP value. Whilst enjoying growth of 8.63 per cent, industrial production and construction accounted for 51.2 per cent of GDP value. Service sector reaped a growth rate of 6.5 per cent, representing 43.9 per cent of GDP.
Exports enjoyed robust growth in the three-month period. Overseas shipments during March soared by 61.1 per cent to US$22.40 billion.
The country posted a trade surplus of US$1.56 billion in March, reported the General Department of Vietnam Customs.