VIETNAM’S economic growth slowed in the first half of the year as exports were hit by a slump in demand, authorities said today.

The Southeast Asian country, a global manufacturing hub for clothing, shoes and electronics, saw expansion of 3.72% in January-June, down from 6.42% in the same period of last year.

“The economic growth was not high… in the context of difficulties and challenges from inside and outside the country,” the General Statistics Office said in a statement.

“There was a trend of more employment but the labour and job markets continue to face difficulties and challenges mainly due to enterprises’ lack of orders.”

The country earned more than US$164 billion (RM766.13 billion) from exports in the first half, down 12% on-year. 

The economy grew 4.14% in the second quarter, marginally up from 3.32% in the first three months of the year.

The World Bank predicted Vietnam’s economic growth for 2023 would come in at 6.3%, against 8% last year.

Officials have set a target of 6.5% but the statistics office admitted reaching that goal “will be a huge challenge that requires high determination and efforts… of the whole political system, enterprises and people across the country”. – AFP, June 29, 2023.