Vietnam's gross domestic product in the first quarter grew 5.66 per cent from a year earlier as exports boomed, government data released on Friday showed, despite higher shipping costs due to turmoil in the Red Sea, reports Reuters.
Growth in the January-March quarter for economy was faster than the expansion of 3.41 per cent in the same period last year, but slower than the 6.72 per cent growth in the fourth quarter. First quarter numbers are generally lower because of festival holidays.
The Southeast Asian nation, a regional manufacturing hub and a key exporter of smartphones, electronics and garments, is seeking to shore up its business activities after it missed its growth target last year on weak global demand and brief power shortages. It has set a 6.0 per cent-6.5 per cent GDP growth target this year.
The manufacturing and construction sector grew 6.28 per cent, while the services sector expanded 6.12 per cent in the quarter from a year earlier, the General Statistics Office (GSO) said in a report.
Goods exports from Vietnam grew sharply in the quarter, despite disruptions to shipping through the Red Sea caused by the Houthis' attacks, which, according to official estimates, resulted in a 55 per cent-73 per cent increase in costs for cargoes from the country.
Goods exports in the quarter grew 17 per cent from a year earlier to $93.06 billion, while imports were up 13.9 per cent to $84.98 billion, resulting in a trade surplus of $8.08 billion.
Shipments of electronics rose 30 per cent from a year earlier, while smartphone exports increased 10 per cent and garments 7.9 per cent, according to the GSO.
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