2Q17 Real GDP Growth Gains Momentum

Economic Research	30 June 2017
Vietnam
Economic Update
2Q17 Real GDP Growth Gains Momentum Vietnam’s real GDP picked up to a growth of 5.7% YoY in 1H17, from a growth of 5.1% in 1Q and compared to 5.5% in 1H16. We believe the strong growth in exports and FDI inflows, along with resilient domestic demand, to continue supporting overall economic activity. For the full year, we expect the country’s real GDP to grow at quicker pace of 6.3% in 2017, from 6.2% YoY in 2016. This is on account of: 1.   Resilient exports stemming from a recovery in global trade activity; 2.   Strong inflows of foreign direct investments (FDI); 3.   Robust private investment; 4.   The Government’s efforts on economic restructuring and institutional reform.                                                                                                                                The stronger growth in 1H17 was mainly on account of a broad-based pick-up in the agriculture; manufacturing, construction and services sectors, while mining activities fell by a smaller margin during the month. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist: Aris Nazman Maslan | +603 9280 2184