Vietnam's Economic Growth Rate Hits 4-Year High of 7.9%

Vietnam's GDP grew an estimated 7.9% in the first half of 2007, the highest mark since 2002, Government officials announced.

The numbers, though, are below a State target of 8.2 to 8.5% for the year.

The country will have to work hard to meet estimates, Minister of Planning and Investment Vo Hong Phuc said during a conference in the province of Thanh Hoa.

Phuc said over the past five months, droughts, bird flu, foot and mouth disease and an epidemic of brown hoppers have hampered the agricultural sector.

Imports also outstripped exports by 17%, he said. The main imports were equipment, machines and production materials.

Construction projects funded from the State budget, credits and government bonds were also behind schedule, he said.

He attributed the delay to price hikes of cement and steel.

In order to reach the 8.2 to 8.5% growth target, the economy will have to expand at 9% in the next six months, Phuc said.

The government will issue a series of new regulations in the hope of increasing production and exports, he said.

In addition, it is very important to promote the development of the industrial and service sectors to compensate for agricultural losses, he said.

Phuc asked local authorities to help speed up the disbursement of State funds.
He also said protecting domestic production and stabilising the inflation rate were priorities.
With the typhoon season on the horizon, Phuc asked authorities nation-wide to take precautions.

Source: VNA