Vietnam sees weaker growth this year

HANOI: Vietnam expects annual economic growth of between 6.3 and 6.5 per cent this year, below target and slowing from last year’s 6.68 per cent, as weakness in agriculture and exports dragged on one of Asia’s most resilient economies.

Adverse weather, including drought in the coffee belt and salination in the Mekong Delta, have put the brakes on Vietnam’s rapid growth, biting into its industrial and agricultural production.

Vietnam’s exports should grow between six to seven per cent this year, below the 10 per cent target, while total loans as of now is seen growing 11.24 per cent from the end of last year, said Prime Minister Nguyen Xuan Phuc yesterday.

“Besides advantages, we faced many difficulties and challenges; global growth and trade were both lower than expected and prices of many basic goods and crude oil were low,” said Phuc.

Gross domestic product growth, however, is seen rebounding to 6.7 per cent next year, Phuc said, while average inflation is expected to hit 4 percent and exports are seen growing between six and seven per cent.

Weakness in mining and agriculture pressured Vietnam’s annual growth to 6.4 per cent in the third quarter, the fastest quarterly pace this year but below the 6.87 per cent in the same period last year.

Inflation this year is seen at four per cent, in line with the government target of keeping the consumer price index from rising above five per cent, while foreign reserves hit US$40 billion (RM166.7 billion), said Phuc. Reuters