Report on socio-economic situation in the second quarter and the first 6 months of 2020

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Major economies such as the US, Japan, and the European community are facing the deepest and deepest economic recession in decades; global trade continued to decline, supply chains were disrupted, crude oil prices plummeted due to limited demand; rising unemployment.

According to international organizations and financial institutions, global economic growth will fall into recession in 2020. Along with that, the US-China trade war continues, increasing political tensions between the US – Iran, internal disagreements in the organization of oil exporting countries and on the Korean peninsula have a negative impact on Vietnam’s economy.

In the country, the Covid-19 epidemic evolved complicatedly, negatively affecting all socio-economic fields, the entire political system, the Government and the Prime Minister placed a top priority on prevention and epidemic suppression, sacrifice economic benefits to ensure the lives and health of the people. This is a solid foundation for Vietnam’s economy to continue to grow, without falling into negative growth.

The above results show the victory of all levels, sectors, business communities and people in the fight against disease, while maintaining production and business activities and gradually bringing the economy back to normal state as before the epidemic.

In the growth rate of 1.81% in the first 6 months of the whole economy, the agriculture, forestry and fishery increased by 1.19%, contributing 11.89% to the general growth; industry and construction increased by 2.98%, contributed 73.14%; service sector increased by 0.57%, contributing 14.97%. The main drivers for economic growth in the first 6 months were processing and manufacturing industry (up 4.96%) and market services (wholesale and retail increased by 4.3%; financial activities), banking and insurance increased by 6.78%).