Gross domestic product rose 7.46% in the third quarter from a year earlier, compared with a revised 6.28%percent in the previous three months, the General Statistics Office said in Hanoi on Friday

The economy expanded 6.41% in the nine months through September, compared with the 6.1% that economists estimated.

The strong growth eases pressure on Vietnam’s officials to add more stimulus to meet a target of 6.7% economic expansion this year. Exports will remain strong because of new factories opening and rising commodity prices, the Asian Development Bank said in a report this month, as it predicted growth of more than 6% this year and next.

The central bank is among a handful of Asian monetary regulators to ease policy this year, unexpectedly cutting its benchmark interest rate for the first time in three years in July. Prime Minister Nguyen Xuan Phuc in August also asked the central bank to take steps to bring down banks’ lending rates to help businesses.

In Asia, economies growing more than 6% a year include China, India and the Philippines.

"While the short-term outlook is pretty decent, risks are building," Gareth Leather, senior Asia economist at Capital Economics Ltd in London, said in a note. "In particular, we are increasingly concerned by the rapid increase in debt. Credit booms on the scale that Vietnam is experiencing are not sustainable over the long term," he said, citing private sector credit growth of around 20%.

Manufacturing rose 12.8% in the nine months through September from a year earlier while exports increased 19.8% and trade deficit was $442 million in the period.

Disbursed foreign direct investment rose 13.4% to $12.5 billion and pledged foreign direct investment increased 34.3%.

Consumer prices rose 3.4% in September from the previous year. The government aims to cap average price gains at 4% this year.

Bloomberg News - September 29, 2017