Vietnam records highest first half growth in five years
HANOI - Vietnam's gross domestic product grew 7.6 percent in the first six months of 2005, the highest first half rate in five years, the Asian Development Bank says.
Vietnam's investment, consumption and external trade figures were up strongly, ADB said in a report sent to reporters late Thursday.
"Projected growth for all of 2005 is 7.6 percent ... and the economy is broadly on course to sustain this momentum through 2006," it said.
The government's projection for the whole year was an ambitious 8.5 percent.
Prime Minister Phan Van Khai said in July that a growth rate of 9.3 percent would have to be recorded in the second half in order to achieve that goal.
But Vietnamese economists had deemed it unrealistic and the ADB report implies that is unattainable.
Last year, Vietnam recorded a
GDP growth rate of 7.7 percent, according to government figures.
In some Asian economies growth is higher in the second half of the year than in the first half when many factories shut down for weeks for traditional spring festival holidays.
Some experts have noted that growth in Vietnam has been driven more by consumer demand than by investment so far.
However, investment was being spurred, the latest ADB report said, partly due to the communist country's increasing engagement with the world economy.
Vietnam was hoping to join the World Trade Organisation by December this year. The timing now looks unrealistic but observers say it is only a matter of time before Vietnam gains entry.
"Likely (WTO) accession and an improving business environment have spurred foreign investment," ADB said.
Eventual membership "and associated legal and technical requirements should help advance the government's agenda for domestic economic reform and international economic integration and will attract more FDI (foreign direct investment," it concluded.
Inflation was running at a fast pace and the forecast for 2005 was 6.0 percent, ADB said.
Agence France Presse - September 09, 2005.
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