HANOI (Reuters – Vietnam will face a challenge to meet its target for 6.0%-6.5% economic growth this year due to headwinds in its economy as well as a slower-than-expected global recovery.

The first quarter’s gross domestic product increased by 5.03% compared to a year ago. This was faster than the 4.72% growth in the same time last year. It is due to the Southeast Asian nation opening more of its exports and manufacturing sectors after easing pandemic restrictions.

Le Van Thanh, Deputy Prime Minster, told the National Assembly global recovery is slowing because of inflation pressures and an increase oil prices.

He claimed that many supply chains were being disrupted, and firms still had high input prices.

Thanh explained that “in the face of domestic as well international developments it’s a great challenge to realize 2022 targets including an economic growth target of 6.0% to 6.5%”

He said that Vietnam will take “flexible steps” to maintain macroeconomic stability, and reduce inflation.

The increase in food, transportation and construction cost led to Vietnam’s April consumer price rise of 2.64% compared with a previous year.