After accelerating strongly last year, Vietnam’s economic activity moderated in the first half of 2016, with GDP expanding by 5.5% during the first half of 2016, compared to a 6.3% growth in the same period last year.
The World Bank in its biannual “Taking Stock” report attributes the slower growth to the impact of a severe drought on agricultural production and slower industrial growth.
“We expect GDP growth of 6% this year. Despite slightly softer growth this year, Vietnam’s medium term outlook remains positive,” said Achim Fock, acting country director for the World Bank in Vietnam.
Meanwhile the General Statistics Office (GSO) said Vietnam witnessed the lowest growth in export revenues from garments and textiles in the first half of 2016 over the past six years.
The country’s garment and textile exports went up 5.1% to hit US$10.7 billion in revenue in the first half of the year compared to the same period in 2015, but this is the lowest growth recorded for the same period since 2010, according to the office.
In the first six months, lack of orders, dropping export prices, rising costs, and falling demand from consumers were reportedly among the difficulties faced by Vietnam’s garment and textile companies.
In 2015, Vietnam earned some $22.63 billion from garment and textile exports, up 8.2% year-on-year, said the GSO.
Cambodia exports expand 9%
On the other hand, Cambodia’s commodity exports were estimated at US$3.66 billion in the first five months of 2016, an increase of 9% over the same period last year, according to the latest figures from the Ministry of Commerce.
Garment and footwear products accounted for about 80% of the country’s total exports, the figures showed.
On the import side, the Southeast Asian nation imported goods valued at $5.25 billion during the January-May period, up 15% from the same period last year.
“The continued growth in export shows the broader access of Cambodian products to foreign markets,” said Mey Kalyan, a senior adviser at the Supreme National Economic Council.
Cambodian’s main trading partners include Europe, U.S., China, South Korea, Japan, Thailand, Vietnam, Singapore, and Malaysia.
Photo: Tophu4u2
