da_lat_city_centerThe gross domestic product (GDP) of Vietnam grew 5.93% in the first nine months of the year compared to the same period last year. This is lower than the 6.53% growth recorded in the same period of 2015, the General Statistics Office (GSO) said.

GDP picked up in the first three quarters at 5.48%, 5.78%, and 6.04%, respectively, said a report from VGP News.

The agro, forestry, and fishery sector grew 0.65%. Industry and construction expanded 7.5% while services rose 6.66%.

Despite numerous challenges, the domestic economy managed to sustain positive growth, said GSO general director Nguyen Bich Lam, even as he stressed that the nation still faces many obstacles such as low growth rate and poor export performance.

To fulfill GDP growth targets, Lam suggested continuing active and flexible monetary policies in combination with current fiscal policies and inflation curbing efforts.

The executive also urged fast-tracking of the restructuring of the agriculture sector, and asked ministries, agencies, and localities to apply long- and medium-term solutions to saltwater intrusion in the Mekong Delta Region, and the drought in the Central Region and the Central Highlands Region.

The senior official also noted the importance of removing business challenges for small and medium-sized enterprises to broaden the domestic market and boost exports; supporting business start-ups; and accelerating the restructuring process of state-owned enterprises.

FDI activity still high

Meanwhile, Vietnam attracted US$16.43 billion in foreign direct investments (FDIs) as of September 20, equivalent to 95.8% of the amount reported in the same period last year, according to the Foreign Investment Agency.

Of the total, $11.17 billion came from 1,820 new projects, and the remaining $5.26 billion were investments added to 851 existing projects.

In the period, FDI disbursement surged 12.4% year-on-year to an estimated $11.02 billion, the agency said.

Foreign investors poured money into 19 sectors, with manufacturing and processing industries garnering the most funding with $12.15 billion, accounting for 73.9% of the total registered FDI.

It was followed by the real estate and science-technology sectors, with $1 billion and $649 million, or 6.1% and 3.9% of the total FDI, respectively.

South Korea remained the leading investor in the period under review, with $5.58 billion, making up 34% of the FDI poured into the country. Singapore was the runner-up with $1.84 billion, or 11.2%. Japan ranked third with $1.7 billion, or 10.3%.

Major investments during the period included a $1.5-billion OLED display factory project and an LG Innotek plant worth $550 million invested by LG Display and LG Innotek Co., Ltd in Hai Phong; an Amata city complex worth $309.3 million by Thai investors in Dong Nai; and a $300-million mobile research and development center project by Samsung Electronics Viet Nam Co., Ltd in Hanoi.

Photo: Frank Fox

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