Vietnam sees Q3 GDP growth above 7%, but warns of external shocks

VIETNAM'S gross domestic product growth is expected to be above 7 per cent in the third quarter, its government said on Monday (Sep 12), while warning of challenges ahead and the possibility of external shocks.

The regional manufacturing hub's GDP accelerated to 7.72 per cent in the second quarter from 5.05 per cent in the first quarter. It had set an official economic growth target of 6.0 per cent to 6.5 per cent for this year.

The government said it had maintained macroeconomic stability so far this year amid global uncertainty, but the economy was still facing obstacles and remains vulnerable to changes in the global economic environment.

"Vietnam's economy is a small but open one with limited resilience, so a small external shock could leave an adverse impact on it," the government said in a statement, referring to global inflationary pressure.

Vietnam's consumer prices in August rose 3.6 per cent from end-2021. The government has targeted inflation at below 4 per cent this year. REUTERS

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