Droughts in Vietnam's Central Highlands and Mekong Delta have hard hit Vietnam. (Photo: enternews.vn)
Vietnam’s gross domestic product (GDP) is predicted to grow 6.17% in the second quarter of this year, accelerating from a 5.46% expansion in the January-March quarter, but lower than a 6.47% rise a year earlier, the Central Institute for Economic Management (CIEM) said in its latest report.
The country’s economic growth is projected at 5.86% in the first half of 2016, far below the 6.32% increase in the comparable period of 2015.
The CIEM attributed the deceleration to a fall in agricultural production due to the drought and saltwater intrusion in the Mekong Delta, and a decline in crude oil production.
Ho Chi Minh City Corp. (HSC), among the top ten brokerage houses in Vietnam, said the agriculture and mining industries will see a pickup between April and June. Agricultural production is estimated to have bottomed out in the first quarter as the impact of the ongoing drought has waned with the start of the rainy season.
The securities firm forecast an increase of 6.3% in GDP for the whole 2016, lower than the government’s target of 6.7%.