Vietnam Economic Growth Slows as Agriculture Takes Hit

Tuan Minh

12:16 29/09/2016

BizLIVE - Vietnam’s GDP grew 5.93% year-on-year in the first three quarters of this year, lower than a 6.53% expansion in the same period of 2015.

Vietnam Economic Growth Slows as Agriculture Takes Hit

Vietnam's agriculture production took a hit from severe drought and saline intrusion. Photo: Luong Thanh/

Vietnam’s gross domestic product (GDP) expanded 5.93% in the first nine months of this year, below a 6.53% growth rate recorded for the same period of last year, according to official data.
The country’s economic growth accelerated to 6.40% in the third quarter (Q3), from 5.78% in Q2 and 5.48% in Q1, the General Statistics Office has said in a press release.
The growth was dragged down by a decline in the mining industry and a poor performance of agriculture, which employs more than 40% of the country’s labor force.
Agricultural output increased a mere 0.65% year-on-year between January and September, the lowest level for the same period over the past six years.
The mining sector, meanwhile, dropped 3.6%, due to a fall in crude oil production and lackluster coal output, the government-run office explained.
In its latest report, the Asian Development Bank (ADB) has revised down its GDP growth forecasts for Vietnam to 6.0% in 2016 and 6.3% in 2017 due to drought in the Mekong and Central Highlands regions and low global commodity prices in the first half of the year.
The government aims an economic growth rate of 6.7% for this year.