HANOI : Vietnam’s economic growth accelerated in the second quarter on robust exports, government data showed on Saturday, but rising inflation remained a challenge for the Southeast Asian country.
Gross domestic product is estimated to have expanded to 6.93 per cent in the second quarter from a year earlier, faster than a growth of 5.87 per cent in the first quarter, the government’s General Statistics Office (GSO) said.
The economy expanded 6.42 per cent in the first half of this year, the GSO added.
Vietnam, an important exporter of smartphones, electronics and garments, is seeking to shore up business activity after missing last year’s growth target because of weak global demand and power shortages.
“Vietnam’s socio-economic situation continues a positive trend, with each quarter being better than the previous one,” the GSO said in a statement.
“The country’s economy and society continue to face many difficulties and challenges, amid external risks and uncertainties … achieving the growth target of 6.0-6.5 per cent in 2024 is a big challenge, requiring the joint efforts from all forces,” the GSO added.
Vietnam’s exports in the first half of this year rose 14.5 per cent from a year earlier to $190 billion, while industrial production increased 10.9 per cent from a year earlier, according to the GSO.
Earlier this week, Prime Minister Pham Minh Chinh said second-quarter GDP growth would exceed the first quarter’s pace, and said policy would continue to prioritise growth to meet this year’s growth target of 6.0 per cent-6.5 per cent.
Chinh said Vietnam would stick to its flexible monetary policy, with an aim of further cutting banks’ lending interest rates, reducing fees and boosting public investment.
INFLATION PRESSURE
The International Monetary Fund expects Vietnam’s economic growth to be close to 6 per cent this year, supported by strong external demand, resilient foreign investment and accommodative policies,
