Vietnam’s GDP posted growth of 3.72 per cent year-on-year in the first half of 2023, despite the continued impact of local and global uncertainties, a new report has said.

According to the Vietnam Economic Update - H1 2023 from the PwC Market Research & Economic Study, the service sector leads the country’s economic growth thanks to policies stimulating domestic consumption, the reopening of the economy since March 15, 2022, and the post-Covid tourism recovery.

While the agriculture, forestry, and fishery and service sectors reported positive developments, industry and construction was seriously affected by political uncertainties worldwide.

According to the report, the agriculture, forestry, and fishery sector demonstrated stable growth, with added value in the agriculture sector during the period rising 3.14 per cent year-on-year, contributing 0.27 percentage points to the increase in total added value in the entire economy.

The added value of the service sector in the first half rose 6.33 per cent year-on-year, higher than the 1.18 per cent and 4.53 per cent recorded in the same period of 2020 and 2021.

Despite Vietnam posting a trade surplus of $12.1 million in the first half, total export value fell 12 per cent compared to the same period last year. Sectors saw declines of 10-20 per cent year-on-year, except for agriculture, chemicals, paper products, and transportation vehicles / accessories.

The slowdown in exports was due to diminishing consumption in major export markets.

Vietnam’s total exports to the US and the EU fell 22 per cent and 20 per cent, respectively, year-on-year, according to the report.

However, it asserted that “Vietnam’s short-term economic outlook remains positive, with the country still being expected to be one of the few countries that maintain its strong growth in 2023, while the rest of the world is projected to experience severe recession.”