JavaScript is off. Please enable to view full site.

Vietnam's economic growth slips to 3-year low in Q1

Wednesday, March 29, 2017, 16:34 GMT+7

Vietnam's economy grew at its slowest pace in three years in the first quarter, government data showed on Wednesday, as production was weak in agriculture, mining and manufacturing.

The General Statistics Office (GSO) said annual growth in January-March was 5.1 percent. That was the slowest expansion for any quarter since the first three months of 2014.

Nguyen Bich Lam, head of GSO, said that if current trends are maintained, Vietnam is "unlikely to reach" its 2017 growth target of 6.7 percent.

Vietnam has been among Asia's fastest growing economies, though in 2016, the economy slowed for the first time in four years, to 6.21 percent from the previous year's 6.68 percent pace.

The extension into 2017 of last year's drought and salination problems hurt agricultural output of Vietnam, a major exporter of rice and coffee.

In the first quarter, mining sector production dropped 10 percent from the same period last year, the GSO said, amid the government's effort to steer away from natural resources, especially in coal, crude oil and gas.

Annual growth of manufacturing in the first quarter slipped to 8.3 percent from 8.9 percent one year earlier, due to falls in food processing and electronics, said Ha Quang Tuyen, head of the GSO's National Accounts Department.

Tuyen said electronics production fell 1 percent in the first quarter from a year, partly due to problems South Korea's Samsung Electronics's experienced with its Note 7 battery.

Samsung, Vietnam's biggest foreign investor, has invested billions of dollars in the Southeast Asian nation.

Lam of GSO said challenges facing Vietnam include low labour productivity, a continuing impact from drought and salination, inflation, and how the current economic structure is not facilitating stable growth. 



Read more




Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news