Vietnamese GDP expanded rapidly in the first quarter of 2022, while the stock market plummeted

DNHN - Although the first quarter of 2022 saw the highest number of Covid-19 infections nationwide, Vietnam's GDP growth increased by 5.03 per cent, maintaining the quarter's increasing momentum and demonstrating positive signs of an economy recovering strongly and entering a new normal following the pandemic.

According to the report on the socio-economic situation in the first quarter of 2022, the gross domestic product (GDP) in the first quarter of 2022 is estimated to increase by 5.03% over the same period last year, higher than the growth rate of 4.72% in the first quarter of 2021 and 3.66% of the first quarter of 2020 with the processing and manufacturing industry continuing to be the main growth drivers. 

In the industry and construction sector, the industry in the first quarter of 2022 increased by 7.07% over the same period last year, higher than the increase of 6.44% in the first quarter of 2021, contributing 2.42 percentage points to the growth rate of total value added of the whole economy.

The processing and manufacturing industry grew strongly with an increase of 7.79%, contributing 2.05 percentage points. The mining industry grew positively by 1.23% (coal mining increased by 3.2% and metal ore increased by 5%), increasing by 0.04 percentage points the increase in the total added value of the whole economy. The construction industry grew by 2.57%, lower than the 6.53% growth rate of the first quarter of 2021, contributing 0.16 percentage points.

The service sector in the first quarter of 2022 prospered when many service activities were active again. Contributions of some market service industries with a large proportion to the increase in total value added in the first quarter of this year are as follows: Financial, banking and insurance activities increased by 9.75% over the same period last year in advance, contributing 0.54 percentage points; transportation and warehousing increased by 7.06%, contributing 0.43 percentage points; wholesale and retail increased by 2.98%, contributing 0.31 percentage points; accommodation and catering services decreased by 1.79%, down 0.04 percentage points.

Regarding the structure of the economy in the first quarter of 2022, the agriculture, forestry and fishery sector accounts for 10.94%; industry and construction accounted for 37.97%; service sector accounted for 41.70%; product tax minus product subsidies accounted for 9.39% (corresponding structure of the same period in 2021 was 11.61%; 36.61%; 42.38%; 9.40%). Regarding GDP use in the first quarter of 2022, final consumption increased by 4.28% over the same period last year; accumulated assets increased by 3.22%; exports of goods and services increased by 5.08%; imports of goods and services increased by 4.20%.

Although GDP growth in the first three months of the year was positive, it was still lower than the 6.85 per cent growth rate in the same period last year, indicating that the economy requires further time to recover from the pandemic's adverse effects on industries such as Vietnam will restore tourist destinations and welcome international visitors at the end of Q1, the industry's primary source of revenue. Vietnam's GDP in the second quarter of 2022 could climb significantly more than it did in the first quarter if the epidemic is mostly contained and the government's economic support programs take effect gradually. 

GDP report in the first quarter of 2022 showed good growth, showing a healthy and recovering economy, creating conditions for the stock market to grow. Closing the session on 4/5, VN-Index closed at 1520 points, only 0.5% lower than the historical peak of 1528 points, the market recovered well after a period of the bad influence of the stock market. due to political tensions between Russia and Ukraine.

The VN30 index - a collection of 30 stocks with large-cap indexes leading the market to close at more than 1539 points, although 0.57% lower than yesterday's closing level of 1548.5, but increased significantly by 3.7 % compared to 1484 points a week ago and returned to lead the market after a period of being overshadowed by small-medium cap-cap stocks.

With strong GDP reports, financial statements for the first quarter of 2022 of companies in strong growth fields such as processing and manufacturing industries such as steel stocks - a new industry that has joined the export block of more than 10 billion USD. in 2021; or banking-insurance stocks, which account for a large proportion in the VN30, can also be a bright spot, bringing the Vietnamese stock market to a new peak. 

 Anh Duc