GDP increases 3.82 percent, CPI jumps 5.56 percent in Q1

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Gross domestic product (GDP) in the first quarter of this year is estimated to increase by 3.82 percent compared to the same period last year while average consumer price index (CPI) surges by up to 5.56 percent compared to the same period last year, according to Director-General of the General Statistics Office of Vietnam Nguyen Bich Lam at a conference held on March 27.
Noticeably, enterprises faced many difficulties in the first quarter of this year because of direct impacts from the Covid-19 pandemic. The number of enterprises temporarily halted operations rose to 18,600 enterprises, an increase of 26 percent compared to the same period last year.

However, the result of surveys on the business tendency of processing and manufacturing enterprises showed that they expected the disease would be controlled soon so the business and production situation was forecast to be more optimistic in the second quarter than in the first quarter of this year.

In the first three months of this year, there were 29,700 newly-established enterprises across the country with total registered capital at VND351.4 trillion and total registered labor of 243,700 workers.

Therefore, in comparison with the same period last year, the number of newly-established enterprises increased by 4.4 percent in volume, decreased by 6.4 percent in the value of registered capital, and declined by 23.3 percent in the number of workers. The average registered capital of a newly-established enterprise in the first quarter reached VND11.8 billion, down 10.4 percent compared to the same period last year.

If including the additional capital of VND552.4 trillion of 9,100 enterprises, the total capital added to the economy in the first quarter was VND903.8 trillion, down 17.7 percent over the same period last year.

The surveys on the business tendency of processing and manufacturing enterprises showed that 20.9 percent of enterprises said that business and production situation in the first quarter of this year was better than the last quarter of last year; 42 percent of enterprises said they encountered difficulties; 37.1 percent of enterprises said that their business and production situation was stable.

Trade and service activities in the first three months of this year were poor. Consumers avoided shopping in public places, traveling, and eating out. The number of foreign visitors to Vietnam in the first quarter fell by 18.1 percent over the same period last year, of which, all markets saw declines. The highest drop level was from large markets, including China, South Korea, and the US.

By Anh Phuong – Translated by Gia Bao

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