News Room - Business/Economics

Posted on 27 Mar 2009

Vietnam's economy slows to lowest rate in 10 years

Vietnam's economic growth slowed to its lowest rate in a decade in the first quarter, the government said Friday, as the global economic slump dragged on exports and construction.

 

Gross domestic product grew an estimated 3.1 percent in the January-March period from a year earlier, less than half of 7.4 percent growth in the same period last year, the General Statistic Office said in a statement.

 

The world economic crisis has cut into export demand and foreign direct investment, which has led to a recession in the country's construction industry, it said.

 

The office often releases economic data before the end of the period in question.

 

The government has lowered its 2009 growth forecast from 6.5 percent to between 4.8-5.6 percent.

 

Ayumi Konishi, country director of the Asian Development Bank, was optimistic about the outlook for Vietnam.

 

"Knowing what's happening with the world economy now, 3.1 percent growth isn't really bad," Konishi said.

 

"I think the country's economy will soon pick up it pace in the next quarter."

 

Vietnam's economy has expanded an average of 7 percent a year the past decade, but began overheating last year with inflation skyrocketing and the trade deficit ballooning.

 

The once-Asia's tiger economy slowed to 6.2 percent in 2008.