Viet Nam estimated its trade deficit this year would rise 20.6% to $17 billion, below earlier government forecasts, as exports jumped 29.5%, the highest growth since 2004.

Exports would reach an estimated $62.9 billion and imports would also rise 27.5% from last year to $79.9 billion, the Planning and Investment Ministry-run Dau Tu (Investment) newspaper cited the ministry’s reports as showing.

“In 2008 exports have reached the highest growth since 2004,” it said. In 2004, export’s grew 31 percent from the year before.

The government had forecast a trade deficit of $19 billion this year. Last year’s trade deficit was $14.1 billion, revised from an earlier estimate of $12.4 billion. according to the ministry’s figures.

The report did not give details of the value of Vietnam’s key exports such as crude oil, coffee and rice. The government is expected to release full trade data later this week.

Vietnam’s trade deficit and inflation raced to multi-year highs this year due to a rise in energy and food prices, forcing the government to cut its 2008 growth target to 6.7% from 8.5-9%.

The government has forecast the annual trade deficit in 2009 at $17 billion to $18 billion. (Reuters)