Vietnam's economy grew 9.95 percent in the third quarter from a year earlier, government data showed on Saturday, the fastest quarterly growth since the COVID pandemic and an acceleration from a revised expansion of 8.81 percent in the second quarter.
Growth in the July-to-September quarter was driven by strong exports and robust investment in infrastructure, but it remains short of the country's full-year growth target of above 10 percent.
Exports surge, but so do import costs
Exports of goods in September rose 39.1 percent from a year earlier to $59.48 billion, while imports were up 45.8 percent to $58.21 billion, resulting in a trade surplus of $1.27 billion for the month, the National Statistics Office said.
For the first nine months of the year, exports rose 24.5 percent to $434.30 billion while imports climbed 36.7 percent to $453.72 billion, translating into a record-high trade deficit of $19.42 billion. The export-reliant economy has faced rising import costs this year due to the Iran war: crude oil imports fell 13.5 percent in volume but were up 14.4 percent in value, while refined fuel imports rose 11.5 percent in volume but a steep 79.3 percent in value.
Consumer prices in September rose 5.08 percent from a year earlier, and industrial production increased 16.7 percent year on year. Total investment in the nine-month period rose 16.7 percent as the country ramps up public infrastructure spending, and foreign investment inflows rose 12.1 percent to $21.1 billion.
Cautious optimism, with warnings
The Asian Development Bank, which last week raised its forecast for Vietnam's economic growth this year to 7.8 percent from 7.2 percent, said the country's near-term growth prospects remain robust, underpinned by continued expansion in manufacturing, buoyant domestic consumption and sustained foreign direct investment. But it warned that weaker global demand, heightened external uncertainty, higher energy prices and tighter global financial conditions could weigh on growth and add to inflation and exchange-rate pressures.
Laura Schwartz, a senior Asia analyst at risk intelligence firm Verisk Maplecroft, said concerns are rising that Vietnam's economy could be running too hot, particularly given accelerating inflation in recent months, adding that potential electricity shortfalls in the near and mid-term will also pose significant challenges.
Sources:
The Manila Times (AFP): Vietnam's quarterly GDP grew fastest in 4 years
Growth in the July-to-September quarter was driven by strong exports and robust investment in infrastructure, but it remains short of the country's full-year growth target of above 10 percent.
Exports surge, but so do import costs
Exports of goods in September rose 39.1 percent from a year earlier to $59.48 billion, while imports were up 45.8 percent to $58.21 billion, resulting in a trade surplus of $1.27 billion for the month, the National Statistics Office said.
For the first nine months of the year, exports rose 24.5 percent to $434.30 billion while imports climbed 36.7 percent to $453.72 billion, translating into a record-high trade deficit of $19.42 billion. The export-reliant economy has faced rising import costs this year due to the Iran war: crude oil imports fell 13.5 percent in volume but were up 14.4 percent in value, while refined fuel imports rose 11.5 percent in volume but a steep 79.3 percent in value.
Consumer prices in September rose 5.08 percent from a year earlier, and industrial production increased 16.7 percent year on year. Total investment in the nine-month period rose 16.7 percent as the country ramps up public infrastructure spending, and foreign investment inflows rose 12.1 percent to $21.1 billion.
Cautious optimism, with warnings
The Asian Development Bank, which last week raised its forecast for Vietnam's economic growth this year to 7.8 percent from 7.2 percent, said the country's near-term growth prospects remain robust, underpinned by continued expansion in manufacturing, buoyant domestic consumption and sustained foreign direct investment. But it warned that weaker global demand, heightened external uncertainty, higher energy prices and tighter global financial conditions could weigh on growth and add to inflation and exchange-rate pressures.
Laura Schwartz, a senior Asia analyst at risk intelligence firm Verisk Maplecroft, said concerns are rising that Vietnam's economy could be running too hot, particularly given accelerating inflation in recent months, adding that potential electricity shortfalls in the near and mid-term will also pose significant challenges.
Sources:
The Manila Times (AFP): Vietnam's quarterly GDP grew fastest in 4 years
