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Vietnam GDP grows by 6.81 percent thanks to Samsung and Taiwan’s FPG

Actual growth exceeded target set by Vietnam Legislature

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Workers at a garment factory in Vietnam.

Workers at a garment factory in Vietnam. (AP photo)

TAIPEI (Taiwan News) – Vietnam’s Gross Domestic Product grew by 6.81 percent in 2017 thanks to factories from Samsung of South Korea and the Formosa Plastics Group (台塑集團) from Taiwan, reports said Thursday.

State statistics officials said the processing and manufacturing sector expanded by 14.5 percent this year, with Samsung accounting for 5.43 percent and Formosa Plastics for 0.19 percent, the Central News Agency reported.

The growth figures were the best for Vietnam since 2011, reports said. The communist country’s legislature had set 6.7 percent as a target, but the economy grew by 5.15 percent in the first quarter, 6.28 percent in the second, 7.46 percent in the third, and 7.65 percent in the final quarter of the year, accounting for a total 6.81 percent to exceed expectations.

Looking at different sectors of the economy, agriculture and forestry rose by 2.9 percent, industry and construction by 8 percent, and the service sector by 7.44 percent.

However, government officials warned that the country’s economy should not become too dependent on foreign investment, CNA reported.

The average GDP had now reached US$2,385 (NT$71,000), a rise of US$170 (NT$5,000) from last year, statistics showed. Inflation had been restrained to 3.53 percent, well within the government target of 4 percent.