Vietnam economy expands by 7.4 percent in third quarter

HANOI

Vietnam's economy grew by 7.4 percent in the third quarter, government figures showed on Oct. 6, despite severe economic damage caused by deadly Typhoon Yagi.

Vietnam suffered $3.3 billion in economic losses as a result of Yagi which swept across the country's north, causing devastating flooding and 345 deaths.

The growth rate was the result of "adapting effectively to the fluctuations of the global economy and addressing the severe consequences of natural disasters," the General Statistics Office (GSO) said in a statement.

The agriculture, forestry and the fishery sector was particularly affected by Yagi, the GSO said.

But exports were up 15.8 percent compared to the same period last year.

The Vietnamese government is aiming to reach an economic growth rate of 6.8 to 7 percent for 2024.

But the Asian Development Bank (ADB) warned in September that "geopolitical tensions and uncertainties related to the United States election in November could lead to trade fragmentation, adversely affecting exports, manufacturing activity, and employment."

The United States was Vietnam's largest export market in the first nine months of 2024, according to the GSO.

The ADB also said that Vietnam was still in the recovery phase after the storm, and the estimated damage figures may not yet be final.

S&P Global Market Intelligence said that manufacturing production dropped sharply in September, with new orders down and firms unable to complete or export orders they had.

The ADB predicts six percent growth for Vietnam's year-end figure.

The communist state has long been a success story among Asian economies and in 2022 its economy grew eight percent.