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The Spurring Vietnam Economy, Grows Best Rate In A Decade
ECONOMY Vietnam

The Spurring Vietnam Economy, Grows Best Rate In A Decade

Vietnam's economy grew at its fastest pace in a decade during the first quarter of the year, data showed on March 29, driven by a surge in electronics manufacturing and exports.

The reading comes as the country is poised to further expand its overseas markets after signing an 11-nation Asia-Pacific trade deal this month that replaces the Trans-Pacific Partnership (TPP), scrapped by the US last year.

Source: VnExpress.net
Source: VnExpress.net

The 7.38% expansion was sharply up from the rate of just over five% seen in the same period last year, according to the Government Statistics Office, and well above the government's annual target of 6.7%.

The figures are the best since a 7.4% growth reading in January-March 2008.

Representatives of members of Trans-Pacific Partnership (TPP) trade deal pose for an official picture before the signing agreement ceremony in Santiago, Chile March 8, 2018 | Twitter
Representatives of members of Trans-Pacific Partnership (TPP) trade deal pose for an official picture before the signing agreement ceremony in Santiago, Chile March 8, 2018 | Twitter

While agriculture and wholesale and retail trade saw steady rises year-on-year, manufacturing remained the pillar of growth, expanding more than 13%, the GSO said.

Vietnam is a manufacturing hotspot in Asia especially for electronics, drawing industry heavyweights such as LG Electronics, Samsung and Canon with its cheap labour and open-door trade policies.

Exports in January-March topped more than $54 billion, a 22% rise from the same period last year, the GSO said.

Source: VietNamNet Bridge
Source: VietNamNet Bridge

After the release of the figures, officials in Hanoi said strong growth at the end of 2017 helped to buoy first-quarter figures, though analysts said it was too soon to tweak annual forecasts.

"It raises the question obviously can we improve from this level? I don't think anybody is raising their forecasts for the year now," Barry Weisblatt, head of research at Viet Capital Securities, told AFP.

"We may raise our full-year forecast slightly, but probably not a lot," he added.

The World Bank has set its 2018 forecast at 6.5% while Viet Capital Securities is targeting 6.8%.

Source : https://www.bangkokpost.com/news/asean/1437234/vietnam-economy-grows-at-best-rate-in-a-decade

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