Vietnam GDP growth poised to top 5% this year: Party chief

Vietnam’s economic growth may surpass 5% this year, below the mandated 6.5%, as the country has seen a drop in exports amid global weaker demand, Party General Secretary Nguyen Phu Trong said Sunday.

“Although lower than the target of 6.5%, it is quite high in comparison with many countries in the region and the world,” the Party chief noted in his closing remarks at a week-long Party Central Committee gathering.

The consumer price index (CPI), the main gauge for inflation, is forecast to increase 3.5% this year, far below the full-year target of 4.5%. The country’s external trade will likely exceed $700 billion, with a trade deficit estimated at $15 billion, he added.

According to Vietnam’s customs data, the country posted a trade revenue of $730.2 billion in 2022, up 9.1% from 2021. Of the amount, exports increased 10.5% to $371.3 billion while imports went up 7.8% to $358.9 billion. It earned a surplus of $12.4 billion.

In the nine months through September, Vietnam’s GDP expanded 4.24% while the CPI rose 3.16% from a year earlier, government data showed.

Disbursement of public investment increased nearly 5% to around VND110 trillion ($4.5 billion), helping accelerate a large number of infrastructure projects across the country, including 659 kilometers of expressways put into operation.

A number of international institutions have revised down Vietnam’s export-reliant economic growth to between 4.7% and 5.9% this year after lackluster performance in the first half. Their growth forecasts for 2024 are higher on the back of better trade outlook.