Vietnam will stick to 6.5% GDP target despite headwinds: deputy PM

In the first quarter ended in March, Vietnam recorded 3.3% growth, much lower than the target. Quang said that the "first quarter number was not appropriate."

He said the public sector remained sluggish, still recovering from the COVID-19 pandemic. The communist Southeast Asian nation has also been affected by weaker demand and less investment in the private sector, as interest rate hikes in the U.S. and elsewhere send a chill through the global economy.

"We are accelerating investment to the public sector ... to compensate for some of the areas the private sector can't cover," said Quang, conceding that "there are some delays."

"In the third quarter we will be able to see some benefits out of our policies," he said. "In the fourth quarter, we will see real benefits."

He said the 6.5% goal remains "very important" and that keeping it would put "good pressure" on the Vietnamese people to work toward it.

On geopolitical tensions, he said, "Asian countries need to jointly share and realize the vision of building a rule-based international system, with the U.N. Charter placed at its center." Quang did not mention any specific conflicts or countries, but his remarks come as China expands its military activity in the South China Sea. Beijing's claims to the waterway overlap with Vietnam's and those of other nations.

"Asian countries, especially the major ones in the region, need to overcome their differences, look for common denominators of cooperation, and contribute to peace and stability in the region and the world," Quang said.

Source: Nikkei Asia