Vietnam’s economy grew at a faster pace in the second quarter than economists predicted, underpinned by foreign investment and export growth.
Gross domestic product rose 6.71% from a year earlier, down from a revised 6.82% in the first quarter, according to data from the General Statistics Office in Hanoi on Friday. The median estimate in a Bloomberg survey of five economists was for growth of 6.61%.
Key Insights
Exports increased 7.3% in the first six months of the year from the same period in 2018, while imports climbed 10.5%
Trade-reliant Vietnam has emerged as one of the biggest winners in Asia from the U.S.-China trade war as manufacturers divert some of their operations to bypass higher tariffs. Foreign investment has climbed while exports to the U.S. have surged
- At the same time, Vietnam is also coming under greater scrutiny from the Trump administration amid concerns some Chinese exporters are sending goods to the neighboring country, where they are being illegally relabeled as made-in-Vietnam for export to the U.S
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- Consumer prices rose 2.16% in June from a year ago, compared with a median estimate of 2.6% in a Bloomberg survey of economists
- GDP climbed 6.76% in the six months through June from a year ago
