HANOI, March 29 — Vietnam’s growth slowed in the first quarter of this year, dragged down by a weakened agricultural sector hit by a swine flu outbreak and a sharp drop in exports.
The communist country is one of Asia’s fastest growing economies, buoyed by exports that have helped GDP growth hit above six percent annually since 2015.
But year-on-year growth slowed in the first three months of 2019, coming in at 6.79 per cent compared to 7.45 per cent in the same period last year, according to the General Statistics Office (GSO).
One reason for the dip is a swine flu outbreak that has hit the agricultural sector hard and could affect growth for the rest of the year.
The outbreak has so far spread to 23 provinces and cities in Vietnam where 82,000 pigs have already been killed to try to stem further infection.
The UN’s Food and Agricultural Organisation has called on Vietnam to declare the outbreak a national emergency.
First quarter growth slowed in line with a dip in global growth thanks in part to a trade war between China and the US that has sent ripple effects around, badly bruising Vietnam’s exports, GSO said.
Export growth dropped sharply in the first quarter from 22 per cent last year to 4.7 per cent, picking up slightly in March.
GDP first quarter growth “took place in the context of global growth, which slowed down with increasing risks and challenges”, GSO said.
Vietnam has seen glittering economic growth since it embraced market reforms introduced in the 1990s.
The export-led economy has been largely driven by a booming manufacturing sector which churns out shoes, mobile phones and garments to markets around the world.
Annual GDP growth hit 7.1 last year and the World Bank has forecast a slight slump to 6.6 percent in 2019. — AFP
