Vietnam's Economy Grows 7.69 per cent in 2004

Vietnam's Economy Grows 7.69 per cent in 2004 

Vietnam's economy expanded by 8.5 per cent in the last quarter of 2004, bringing the economic growth rate for the whole year to 7.69 per cent, compared with 7.24 per cent growth rate in 2003.

The value of gross domestic product (GDP) rose to VND713 trillion (US$45.4 billion) in 2004, the Planning and Investment Ministry (MPI) said at a report to the government.

Construction and industrial sectors posted a combine growth of 10.2 per cent while the services sectors expanded by nearly 7.5 per cent and the agriculture-forestry-fishery sectors rose by a combined 3.5 per cent.

Vietnam's National Assembly recently set a GDP growth rate of 8.5 per cent for 2005.

According to the MPI's report, Vietnam's trade deficit rose by 8 per cent in 2004 to US$5.5 billion while total development investment inched up 19 per cent on-year to VND258.7 trillion (US$16.5 billion), equalling to 36.3 per cent of GDP.

Total official development assistance (ODA) disbursed in 2004 reached US$1.65 billion including US$250 million grant in aid while total foreign direct investments were US$4.019 billion, up 28.5 per cent on-year (including US$2.084 billion fresh investment in 679 projects).

However, inflation was at 9.5 per cent in 2004, compared to the initial target of 5 per cent.

• Lan Dung