Vietnam's economy expands in Q2 despite export slump

Vietnam's gross domestic product unexpectedly rose 0.36 percent in the second quarter from last year as exports slumped because of the coronavirus pandemic.

However, the growth was at the slowest pace in at least a decade,

The country's economy grew 3.68 percent in the first quarter.

Vietnam's gross domestic product unexpectedly rose 0.36 percent in the second quarter from last year as exports slumped because of the coronavirus pandemic.

However, the growth was at the slowest pace in at least a decade,

The country's economy grew 3.68 percent in the first quarter.

Vietnam's export-reliant economy is reeling from disruption of the global supply chains and poor demand, but one of Southeast Asia's better performers this year.

Exports fell 2 percent in June from last year, while imports surged 5.3 percent.

Prime Minister Nguyen Xuan Phuc perceives Vietnam's economy as sustaining the growth of 4 to 5 percent this year, with the government looking to attract more investments from foreign businesses adjusting supply chains.

Duong Manh Hung, head of the statistics office's GDP department, noted that with the GDP expanding in the first half of 2020 by 1.81 percent, reaching the government's growth target of a 6.8 percent for the year is "impossible" and should be revised.