News Room - Business/Economics

Posted on 02 Dec 2009

Vietnam economy growing but fragile

Revised statistics released Monday by Vietnam's General Statistical Office showed industrial production rising, but foreign investment falling and exports slowing. Industrial production rose 3.6 percent in November over October, the fourth consecutive month of increase. Production was up 13 percent from November 2008.

 

Leading the increase were a 14-per-cent rise in crude oil production, 46 percent in air conditioners and 19 percent in cement.

 

New foreign direct investment (FDI) pledges shrank to 0.8 billion dollars in November. Vietnam attracted 19.7 billion dollars in FDI commitments in the first 11 months, down 72 percent compared with the same period last year.

 

Nine billion dollars in FDI were disbursed through November, down over 10 percent compared with the same period last year.

 

Vietnamese exports earned 4.7 billion dollars in November, down 6.5 percent from October. Imports stayed steady at 6.7 billion dollars, but were up 40 percent compared with November last year.

 

Exports totalled 51.3 billion dollars through November, with imports of 61.7 billion dollars, down 12 and 18 percent from the same period in 2008.

 

In June, the government lowered its projected 2009 export revenues from 72 billion to 65 billion dollars, an increase of 3 percent over 2008. That goal will not be met, and the trade deficit is likely to rise sharply in December due to the State Bank's decision in November to relax a ban on gold imports.

 

Vietnam received 3.4 million foreign visitors in the first 11 months, down 12 percent from the same period last year. China accounted for 476,500 visitors, down 19 percent year-on-year, with the US second at 368,000, down 3%.

 

GDP growth fell from 8.5 percent in 2007 to 6.2 percent last year. The government initially set a target for economic growth of 6.5 percent this year, but the sharp drop in production and exports forced it to readjust the target to 5 percent in May.