HANOI: Vietnam’s economy grew by 5.05 percent in 2023, falling short of a government target of 6.50 percent, according to official figures published on Friday.

The communist country’s GDP stood at $426 billion, with growth down from eight percent last year, according to the official General Statistics Office (GSO).

Exports from the manufacturing powerhouse were down by 4.4 percent, thanks partly to headwinds caused by “strategic competition among big countries” and conflicts in Ukraine and the Middle East, the GSO said.

Vietnam earned $355.5 billion from exports in 2023, it said.

“The GDP growth of Vietnam did not match the country’s potential,” said Tran Thi Ha My, Head of Research at Rong Viet Stocks Company.

The Asian Development Bank had predicted 5.8 percent growth for Vietnam’s year-end figure, “mainly due to weak external demand”.

Vietnam’s economy surged out of the pandemic, but has slowed since then.

More than 217,000 businesses had newly entered or returned to the market this year, up by 4.5 percent year-on-year, according to the GSO.

Average monthly income had increased to around $288, nearly seven percent higher than last year, according to the GSO.

“Growth will recover in 2024… thanks to improvements in exports, investment, consumption and the real estate markets,” My told AFP.