Vietnam’s economy is unlikely to achieve a 6.7% growth rate this year. (Photo: Internet)
Vietnam’s gross domestic product (GDP) may fail to deliver a 6.7% expansion targeted for this year, the Ministry of Planning and Investment said in a report submitted to a regular cabinet meeting Wednesday.
The nation’s economic growth slowed to 5.46% in the first quarter of this year, compared to a 7.01% increase in the previous quarter. The slowdown was recorded in the agricultural production as well as the manufacturing sector, said the report.
According to preliminary calculations, around 429,200 hectares of agricultural cultivation were hard hit by the drought and saline intrusion in the year to April 26, resulting in damages of 8.12 trillion dong ($362.3 million).
The report noted that the ongoing pollution along the central coast has caused mass fish deaths and badly affected the aquaculture and the touristic industry.
The manufacturing industry will face higher input costs if crude oil prices continue to go up, said the ministry.
The external trade sector also saw weaker performance in the first four months of this year. Exports rose 6% year-on-year between January and April, marking the slowest pace since 2011 and below the growth target of 10%.
Push-up costs such as natural disasters, drought and saltwater intrusion could cause consumer prices to spike in the coming months, which could pose barriers to achieving a GDP growth rate of 6.7%, said the ministry.