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Vietnam Today

9M GDP growth at 6.4%

Released at: 16:35, 29/09/2017

9M GDP growth at 6.4%

Illustrative image (Source: tapchitaichinh.vn)

Figure puts 2017 target of 6.7% within reach.

by Quang Huy

GDP grew faster than anticipated in the first three quarters of 2017, putting it on track to potentially beat expectations and reach the full year target of 6.7 per cent, data from the General Statistics Office reveals.

Nine-month growth was 6.4 per cent year-on-year, beating the median forecast of 6.1 per cent from economists surveyed by Bloomberg and well up from the 5.7 per cent recorded in the first half of the year.

In the June-August period, GDP grew 7.46 per cent, driven by a year-on-year rise of 12.77 per cent in the processing and manufacturing industry and a 19.5 per cent year-on-year increase in exports.

Inflation in September was up 0.59 per cent against August, bringing the year-to-date figure to 1.83 per cent; far below the full-year estimate of 4 per cent.

Foreign direct investment (FDI) reached a record $25.48 billion in the first nine months, up 34.3 per cent year-on-year. $14.56 billion came from 1,844 new projects, up 30.4 per cent year-on-year, according to the data from the Ministry of Planning and Investment’s Foreign Investment Agency.

The remaining FDI of $4.16 billion came from 3,742 deals made by foreign investors to contribute capital to businesses and to buy shares, up 64 per cent year-on-year. Disbursement rose 13.4 per cent to $12.5 billion.

Earlier this week, the Asian Development Bank revised its full-year GDP forecast for Vietnam to 6.3 per cent, down from the previous 6.5 per cent. In July, the International Monetary Fund cut its 2017 GDP forecast to 6.3 per cent from the 6.5 per cent forecast in May.

It noted at the time that weaknesses in Vietnam’s oil and gas sector had continued in the first quarter, but maintained that “underlying growth momentum remains robust, underpinned by strong manufacturing activity and FDI, robust domestic demand, and a rebound in agricultural production.” 

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