Viet­nam growth strong de­spite ease

The Myanmar Times - - Business | International -

VIET­NAM’S econ­omy dipped slightly in the third quar­ter year-on-year but an­a­lysts say the com­mu­nist coun­try will re­main one of South­east Asia’s star per­form­ers.

GDP growth in the three months to Septem­ber hit 6.4 per­cent, down from 6.81pc in the same pe­riod in 2015, the Gov­ern­ment Sta­tis­tics Of­fice said in a state­ment.

Viet­nam has be­come a mag­net for pri­vate in­vest­ment in the re­gion, es­pe­cially in the man­u­fac­tur­ing and con­sumer sec­tors, driven in part by a rapidly grow­ing mid­dle class. But cum­ber­some state en­ter­prises, bank­ing scan­dals and grow­ing pub­lic debt have pegged back the econ­omy.

Third quar­ter growth rose from 5.78pc in the pre­vi­ous quar­ter and 5.48pc in the first, of­fi­cial data said, as for­eign in­vest­ment and ex­ports rose and agri­cul­ture re­cov­ered af­ter a dev­as­tat­ing drought.

“We ex­pect Viet­nam to re­main a growth out­per­former, buck­ing re­gional weak­ness in trade,” Eu­ge­nia Vic­torino, an economist at Aus­tralia & New Zealand Bank­ing Group in Sin­ga­pore told Bloomberg News.

Viet­nam has promised to pri­va­tise its bloated state-owned sec­tor, and has an­nounced it would di­vest its ma­jor­ity stakes from lead­ing gov­ern­ment-owned brew­ers Sabeco and Habeco.

Lower-than-ex­pected growth rates clocked in the first half of this year were blamed on a crip­pling drought that ham­mered Viet­nam’s rice and cof­fee farm­ers.

The coun­try has set a GDP growth tar­get of be­tween 6.5 and 7pc by the end of 2016. –

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