Vietnam's exports to grow 22 pct in 2008

HANOI, Oct 10 (Reuters) - Vietnam expects exports to grow 22 percent to $58.6 billion in 2008, with the economy set to expand by more than 8 percent, state media reported on Wednesday.

The Industry and Trade Ministry projected exports in the last quarter of 2007 will reach $12.9 billion and export revenues for the whole of the year will rise 20.5 percent to $48.1 billion, the Saigon Giai Phong (Liberation Saigon) newspaper said.

January to September's exports have risen 19.4 percent to $35.23 billion, while imports for the same period also rose 30.3 percent to $42.87 billion, leaving a record trade deficit of $7.6 billion, government figures showed.

Vietnam's key export items include crude oil, textiles, footwear, fish and shrimp and furniture. The country is also the world's top exporter of black pepper and cashew nuts and ranks second in sales of coffee and rice.

The 22-percent forecast export growth next year will help narrow the country's widening trade deficit, ministry officials said at a meeting in Ho Chi Minh City on Tuesday.

Textiles are expected to surpass crude oil earnings of $7.74 billion next year to reach $9.45 billion. Revenues for footwear will reach $5 billion, seafood $4.1 billion, electronics goods $3.6 billion, and furniture $3 billion.

Government officials said a widening trade deficit was not alarming given a rising inflow of foreign investment after Vietnam joined the World Trade Organisation in January, and imports of machinery and technology for production.

"A trade deficit is in place for production. Economic development would be affected if any cutting (of imports) is introduced," Deputy Minister of Industry and Trade Nguyen Cam Tu was quoted by state media on Monday as saying.

The Asian Development Bank has forecast Vietnam's economy will grow 8.5 percent next year from an estimated 8.3 percent this year.

"Trade benefits from WTO accession are expected to keep export growth brisk in 2008 at 22 percent," the ADB said in a report last month.