HANOI: Vietnam's economy this year expanded slightly behind 2015, missing a government target, marking the first slowdown in four years, but a fourth-quarter surge to 6.68% was the best for a year and kept it ranked among Asia's fast-growing economies.



Full-year growth was projected at 6.21%, slower than the 6.68% posted for 2015 and the government's initial target of 6.7% for 2016, the General Statistics Office (GSO) said on Wednesday.



In 2015, Vietnam's economy had expanded at its fastest pace since 2007 having maintained growth momentum since 2012.



"2016 GDP has not reached target or had any major breakthroughs but in general the economy has had good growth except for the agriculture and mining sectors," GSO head Nguyen Bich Lam told reporters.



Vietnam's slower annual growth - the first deceleration since 2012 - left it ranked behind India, China and the Philippines.



The Statistics Office put the drop in pace down to adverse weather, a marine environmental disaster and an unfavourable global economy.



The economies of four provinces were badly hit by the devastation to the marine environment in April, which devasted fish stocks.



Adverse weather, including drought in the coffee belt and salination in the Mekong Delta, put the brakes on growth, hampering industrial and agricultural production, exports and imports.



Exports were still solid - rising 8.6% in 2016 to total US$175.94 billion - and domestic credit grew 18%, providing the main pillars of support for the South-East Asian economy.



Vietnam is the world's second largest producer of coffee after Brazil and ranks third after India and Thailand in rice exports. Other key foreign exchange earners include mobile phones, textiles, footwear, fish and shrimp.



Import growth was a more modest 4.6%, totalling US$173.26 billion, leaving the country with an estimated trade surplus of US$2.68 billion for this year, following a US$3.63 billion deficit in 2015.



Actual foreign direct investment (FDI) in 2016 were estimated at US$15.8 billion, a record high and which is up 9% from a year ago.



New FDI pledges and additional funds to finance existing projects this year would rise 7% from 2015 to a combined US$24.4 billion, the government said in an online report.



South Korean investors pledged the most funds in 2016, including US$1.5 billion for LG Display's OLED screens plant and by LG Innotek's US$550 million camera plant. - Reuters

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