Other Asian exporters harder hit by the global downturn tweaked their annual output estimates.

The South Korean finance ministry said it expected the national economy to shrink 1.5 per cent this year, improving its April forecast of a 2 per cent contraction, thanks to official stimulus measures.

Thai finance officials similarly cited the beneficial impact of stimulus measures, but changed their estimate for this year's contraction to a range of 2.5 to 3.5 per cent from the 2 to 3 per cent made in March. "The economy is still facing risks associated with the severe contraction of major trading partners' economies and the slow recovery of private spending," said Thailand's fiscal policy office.

Hong Kong, meanwhile, said its exports slid 14.5 per cent in May from a year earlier, its smallest year-on-year decline in 2009.

Vietnam's overall exports fell 10 per cent to $27.57bn (€19.8bn, £16.9bn) for the first half of the year from the same period in 2008, the trade ministry said. The world's second largest rice exporter shipped 3.2m tonnes in the period. It exported 4.7m tonnes for all of 2008, said the Vietnam Food Association. The group said orders for 4.76m tonnes had been received in the first half of 2009.

Hanoi also took cheer from a 4.8 per cent rise in industrial production in the first half from the same period a year earlier, and moderate inflation of 3.94 per cent in June - well down on the 22 per cent rate seen last year.

Seoul reiterated its pledge to maintain expansionary policies until a fully fledged recovery was ensured. The government has promised about Won67,000bn ($52bn, €37bn, £32bn) in stimulus measures and has held interest rates steady at a record low of 2 per cent for the past four months after slashing them by 3.25 percentage points.

Domestic spending remains in a slump while exports continue to fall. Consumption is forecast to fall 1.8 per cent this year before returning to 3 per cent growth next year.

The government expects the country to post a $19bn trade surplus in the first half as imports have fallen much faster than exports. Exports are likely to have fallen 23 per cent in the first six months of this year from a year ago, while imports are expected to have fallen 34 per cent.

By Chawadee Nualkhair - The Financial Times - June 26, 2009