UPDATE - Vietnamese Economy on Path to Grow 6.7% This Year: Official

Tuan Minh

12:21 29/09/2017

BizLIVE - Faster credit growth seems to have played its role of boosting the local economy.

UPDATE - Vietnamese Economy on Path to Grow 6.7% This Year: Official

Vietnam's GDP growth accelerated to 7.46% in Q3/2017.

Vietnam’s gross domestic product (GDP) growth sped up in the third quarter and is poised to meet the full-year target of 6.7%, said Nguyen Bich Lam, head of the government-run General Statistics Office (GSO).
The country’s economy has expanded by 6.41% in the first nine months this year, higher than an expansion of 5.99% in the same period last year, indicating the timeliness and effectiveness of measures taken by the government, the official said at a press meeting on Friday morning.
“This is a positive signal showing the [Vietnamese] economy is heading to meet the growth target of 6.7% set for 2017. This year’s growth target is achievable,” Lam noted.
Of the economic sectors in the nine-month period, agricultural production increased 2.78% year-on-year, contributing 0.43 percentage point to the overall growth. Meanwhile, industry and construction, and services grew 7.17% and 7.25%, contributing 2.45 and 2.80 percentage points, respectively.
After sluggish growth in the first quarter this year, the government has asked the central bank to pump more cash into the economy to bring the full-year credit growth to 21%, above the initial target of 18%.
Vietnam's recent efforts to raise already strong bank lending growth by lowering interest rates to historical lows have the potential to increase financial sector risks, particularly given the large stock of past unresolved bad debt, the Asian Development Bank (ADB) has said in its latest report.