News Room - Business/Economics

Posted on 01 Apr 2008

Economic growth slows in first quarter of 2008 (Vietnam)

Vietnam’s first quarter annual economic growth slowed slightly to 7.43 percent from 7.73 percent a year ago, with expansion driven by industry and construction growth of 8.15 percent, government figures showed this week.

Government officials in the Southeast Asia country that has become a favorite foreign investment destination say they expect to adjust annual GDP and inflation targets for 2008 to reflect the global slowdown.

“Many countries have adjusted growth and inflation targets. We should do the same as in the first quarter we did not achieve the target to keep the consumer price index growth below economic growth,” said Nguyen Tien Thoa.

Thoa said more difficulties were expected this year, so aiming for 2008 inflation to be “not higher than 2007 is suitable.”

Prices this month are 9.2 percent higher than at the end of 2007.

Inflation last year hit 12.6 percent and has been in double digits for five months.

Official statistics estimated Vietnam’s consumer price index for March would jump 19.39 percent from a year earlier, the highest rise in more than 12 years.