Vietnam’s economic growth quickened to 7.31 percent in the third quarter year-on-year, the General Statistics Office (GSO) said on Saturday. The processing and manufacturing industry grew 10.05% in the quarter from a year earlier, while the services sector rose 7.11% and the agricultural sector was up 1.53%, the GSO announced.
Besides, solid exports and robust foreign direct investment underpinned the third-quarter gain, flouting a regional slowdown triggered by U.S.-China and Japan-South Korea trade tensions and waning global demand. The expansion was the fastest pace since the start of last year, as businesses shift production and trade from China to bypass higher tariffs.
Rising foreign direct investment and “buoyant domestic demand, as suggested by the recent robust retail sales growth,” will keep the momentum going through year-end and in early 2020, regional economists asserted.
GSO also revised up second-quarter gross domestic product (GDP) growth to 6.73% from 6.71%.
In light of this strong economic momentum, ADB maintained its forecast for Vietnam’s growth for this year at 6.8%, and for next year at 6.7%. However, other experts are upgrading their growth projections for Vietnam. For example, Citigroup revised its full-year forecast to 6.9% from 6.7%. Analysts at Maybank Kim Eng Research now see 7% growth for the year versus a prior call of 6.8%. United Overseas Bank Ltd. changed to 6.8% for the year from 6.7%.