Vietnam’s quarterly GDP grows fastest in 4 years as exports boom

Hanoi, Vietnam - The country's gross domestic product (GDP) expanded by a remarkable 9.95 percent in the third quarter of this year, marking the fastest quarterly growth since the COVID-19 pandemic, according to government figures released on Saturday. This impressive expansion was driven by robust exports and significant investment in infrastructure projects.

The July-September quarter's growth was notably higher than the revised 8.81 percent increase recorded in the previous quarter. However, the growth figure still fell short of Vietnam's annual growth target of more than 10 percent. The economy, heavily reliant on exports, has been grappling with rising import costs due to the ongoing conflict in Iran, leading to a trade deficit that reached a record high for the first nine months of the year.

Notably, exports of goods surged by 39.1 percent in September compared to the same period last year, reaching USD59.48 billion. Conversely, imports grew by 45.8 percent to USD58.21 billion, resulting in a trade surplus of USD1.27 billion for the month. Over the first nine months of the year, exports increased by 24.5 percent to USD434.30 billion, while imports rose by 36.7 percent to USD453.72 billion, creating a trade deficit of USD19.42 billion - a new record high for Vietnam.

The widening trade deficit was partly attributed to higher prices for energy imports. While crude oil imports decreased by 13.5 percent in volume, their value rose by 14.4 percent. Conversely, imports of refined fuels saw an 11.5 percent increase in volume but a staggering 79.3 percent rise in value. Consumer prices in September also increased by 5.08 percent compared to the previous year.

Industrial production rose by 16.7 percent year on year in September, indicating continued industrial growth. The data revealed that total investment for the nine-month period grew by 16.7 percent from the same period last year, as the government has been intensifying public investment in infrastructure as part of its strategy to stimulate economic growth. Foreign investment inflows during this period also increased by 12.1 percent to USD21.1 billion, according to the National Statistics Office (NSO).