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VIETNAM-ECONOMY
Vietnam posts decade-high growth of 7.1% in 2018
HANOI, Dec 27, 2018 (BSS/AFP) – Vietnam’s growth soared to more than 7
percent this year, its highest in a decade, helped by a surge in its
manufacturing sector.
The country has long been one of Asia’s fastest growing economies — GDP
growth topped 5 percent over the past five years — largely driven by the
exports of cheap manufactured goods, from Nike shoes to H&M T-shirts, as well
as tech products like Samsung phones and Intel computer processors.
But this year’s growth surpassed the communist government’s target of 6.7
percent, hitting 7.08 percent, according to figures released Thursday by the
General Statistics Office in Hanoi.
“The processing and manufacturing sector was the bright point and the main
driver for the overall growth” with a 12.98 percent increase, said GSO head
Nguyen Bich Lam.
He added the economy would remain robust next year with the expected
contribution of manufacturing projects such as Vinfast, a local car assembly
company owned by Vietnam’s largest private conglomerate Vingroup.
Run by Vietnam’s richest man Pham Nhat Vuong, Vingroup also recently
unveiled its first made-in-Vietnam mobile phones in an effort to gain a slice
of the lucrative market.
However, the World Bank predicted a slowdown over the next two years if
Vietnam does not protect itself from escalating global trade tensions.
“As an open economy, Vietnam needs to maintain a responsive monetary
policy, exchange rate flexibility and low fiscal deficits to enhance its
resilience against potential shocks,” said Sebastian Eckardt, the bank’s lead
economist for Vietnam.
A bruising trade war between the US and China has caused reverberations
around the region, as Washington and Beijing have slapped tit-for-tat tariffs
on more than $300 billion worth of goods.
But relations have eased after both sides agreed to a 90-day truce earlier
this month.
BSS/AFP/SR/1900 HRS