Vietnam's economy may grow 6.5 pct this year: official

BY  | FROM  | 2017-08-10 15:30

Vietnam's gross domestic product (GDP) is most likely to grow some 6.5 percent this year, lower than its target of 6.7 percent, according to the country's Ministry of Planning and Investment on Thursday.

The Vietnamese economy is forecast to expand 6.5 percent this year, with 2.9- percent growth in agriculture, 7.3-percent growth in industry and 7.2-percent growth in service, said the ministry's National Center for Socio-Economic Information and Forecast.

Vietnam is most likely to face an inflation rate of 4 percent this year, up from 2.66 percent last year, the center added.

The center cited some key reasons for its lower-than-target GDP forecast, including potential negative impacts of unstable geopolitics and increased trade protection trends in the world on Vietnam's trade and foreign direct investment attraction, direct impacts of the United States' trade protection and tariff policies on Vietnam's export, and crude oil prices' falling to below 50 U.S. dollars per barrel.

"If oil prices continue to dip further, Vietnam should consider increasing oil exploitation output," said the center.

According to Vietnam's National Financial Supervisory Commission, increasing crude oil output by 1 million tons is estimated to contribute 0.25 percentage points to the country's economic growth.

The Vietnamese economy grew 5.7 percent in the first half of this year, according to the ministry. The growth rates were 6.21 percent in 2016, and 6.68 percent in 2015.

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