HANOI- Vietnam expects gross domestic product growth of more than 5 percent this year, missing an earlier government target, the country’s prime minister told a parliament meeting on Monday.
The country’s inflation is expected to be 3.5 percent -4 percent for the year, Pham Minh Chinh said.
Vietnam had set a GDP growth target of 6.5 percent for this year, down from 8.02 percent last year. Weak global demand, however, has weighed on the country’s exports.
Chinh said Vietnam has an open economy that is prone to external shocks, adding that high inflation, weak demand and political uncertainties in the world have hurt the country’s exports, which fell 8.5 percent in the first nine months of this year.
“Manufacturing is witnessing a slow recovery, with businesses experiencing fewer orders,” he said. “Exports to strategic markets fell year on year.”
He also said non-performing loans in the banking system are on the rise.
“For the rest of this year, Vietnam will continue to prioritize growth,” Chinh said, noting that the central bank has this year cut its policy rates four times.
GDP in the July-September quarter grew 5.33 percent from a year earlier, faster than an expansion of 4.05 percent in the second quarter, but much slower than the low-base growth of 13.71 percent in the same period of 2022.