Despite widespread damage caused by Typhoon Makkah in northern Vietnam last month, strong exports and industrial production, coupled with increased foreign investment, drove economic growth, with GDP growing 7.4% in the third quarter of this year, the strongest quarterly growth in two years.

The General Statistics Office of Vietnam said in announcing the latest quarterly economic data that the growth rate was the result of "effectively adapting to global economic fluctuations and coping with the serious consequences of natural disasters."

According to the General Statistics Office, Vietnam's gross domestic product (GDP) grew 7.4% in the third quarter of this year, higher than the market expectation of 6.1% and the revised 7.09% in the second quarter. The Vietnamese government aims to achieve an economic growth rate of 6.8% to 7% for the whole year.

The report pointed out that improved global commodity trade, easing inflationary pressures, continued easing of financial conditions and increased labor supply have led to a stabilization of the world economy, which is conducive to Vietnam's import and export activities.

In the first nine months of this year, Vietnam's exports reached US$299.63 billion (about S$390.6 billion), an increase of 15.4% year-on-year. Imports increased by 17.3% year-on-year to US$278.84 billion, with a trade surplus of US$20.79 billion.

In terms of foreign investment inflows, the total amount reached US$17.3 billion in the first nine months of this year, an increase of 8.9% year-on-year.

Typhoon Makar hit Vietnam hard in early September, killing more than 300 people. Industrial areas in northern Vietnam were shut down due to power outages, and the authorities estimated the economic losses at US$3.3 billion.

Despite the good economic performance in the third quarter, the Asian Development Bank said last month that Vietnam is still in the recovery stage after the typhoon and has not yet calculated the actual economic losses, which may affect the economic performance of the whole year. It also predicted that Vietnam's economic growth rate this year will be 6%.