HANOI—Vietnam’s economy grew 5.3 percent on-year in the third quarter, official data showed Friday, though experts warned it was on course to miss an ambitious year-end target.
Loan interest rate reductions, an extension of tax payments and increased public investment had a positive impact, the General Statistics Office (GSO) said.
But analysts warn it will be an uphill battle for the clothing, shoes and electronics manufacturing hub to reach a year-end target of 6.5 percent expansion for 2023.
“Vietnam would only reach a year-end economic growth of between 4.5 percent and 4.7 percent, much lower than the government’s set target,” Rong Viet Stocks Company chief economist Tran Thi Ha My told AFP.
“Growth for the fourth quarter is expected to be at around six percent… largely thanks to improved industrial production and exports.”
According to GSO, a slump in demand hit the country’s exports.
One of Vietnam’s largest shoemakers for brands such as Nike, Adidas and Reebok announced in August it would cut jobs for the third time this year.