PM Nguyen Tan Dung

Vietnam has weathered the global economic slump but growth has hit a 10-year low and there are many challenges before the nation is on a solid footing, the prime minister warned on Tuesday.

Gross domestic product (GDP) growth this year is projected to reach 5.2 per cent, in line with a target of around five percent set by legislators, Dung said at the opening of a two-yearly National Assembly session.

“2009 GDP growth is the lowest in 10 years,” Mr Dung said.

The Asian Development Bank (ADB) last month revised upwards Vietnam’s projected 2009 growth rate 0.2 percentage points to 4.7 per cent, the second highest in Southeast Asia after Laos.

The bank said Vietnam’s economic slowdown appears to have bottomed out and its growth is better than that of many other countries.

But despite signs of improvement, Dung said this has been “a year of difficulties and challenges,” adding that exports and tourism are down sharply, industrial output is recovering but remains at a low while there is “hoarding” of dollars and a balance of payments deficit estimated at US$1.9 billion (S$2.64 billion).

Source: AFP