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Vietnam ‘s Q1 GDP Growth Slows Slows as Weak Demand Hits Exports

Vietnam’s gross domestic product (GDP) grew by 3.32% in the first quarter of 2023, a significant slowdown from the 5.05% growth seen in the same period in 2022. The National Statistical Office of Vietnam (GSO) cited a sharp contraction in exports due to weakening global demand as the primary reason for the slowdown.

As Southeast Asia’s manufacturing hub, Vietnam exports suffered a decline of 11.9% in Q1 compared to the previous year. Smartphone shipments, which account for the country’s largest export earnings, saw a decline of 15% to $13 billion, while shipments of electronic devices declined by 10.9%.

The country’s industrial production also saw a 2.3% year-on-year drop in the first quarter, but the retail sales of goods and services experienced a 13.9% rise. Despite this, the average consumer price index (CPI) in Q1 increased by 4.18% year-on-year, although there was a 0.23% decline in the CPI in March compared to February.

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