Vietnam Accelerated its Growth in 2010

Vietnam’s economy grew 6.8% in 2010, the government says, significantly more than the 6.3% and 5.3% the previous two years, respectively, but well below the robust 8.5% growth in 2007.  The economic growth accelerated throughout 2010 and rose to 7.3% in the fourth quarter.

Inflation hit 11.8% in December.  The trade deficit stayed relatively steady at $12.4 billion.  Pledges of foreign direct investment fell about 18%, but dispersed foreign capital was up 10% to about $11 billion.

The government has targeted 7% economic expansion in 2011, but the World Bank and other international organizations continue to caution that the country needs to shore up its foreign exchange reserves, tame inflation, strengthen its currency, balance its budget, balance its trade accounts, combat corruption, and improve its infrastructure.

Early in 2011, the government will be signaling to foreign investors and businesses how Vietnam intends to accomplish all of this.   

More on Vietnam’s 2010 year-end economic report

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