HANOI, Vietnam: Vietnam's economy expanded at its fastest quarterly pace since the COVID pandemic as booming exports and infrastructure investment helped drive growth to nearly 10%, government data showed on Saturday.

Gross domestic product grew 9.95% in the third quarter from a year earlier, accelerating from a revised 8.81% expansion in the April-June period.

Despite the rapid growth, the July-September performance remained below the government's full-year growth target of more than 10%.

Exports of goods jumped 39.1% in September from a year earlier to $59.48 billion, while imports increased 45.8% to $58.21 billion, leaving the country with a $1.27 billion trade surplus for the month, according to the National Statistics Office.

Over the first nine months of the year, however, Vietnam recorded a record trade deficit of $19.42 billion. Exports rose 24.5% to $434.30 billion, while imports surged 36.7% to $453.72 billion.

The export-reliant economy has faced higher import costs this year because of the Iran war, with rising energy prices contributing to the widening trade deficit.

Crude oil imports fell 13.5% by volume during the nine-month period but increased 14.4% in value. Imports of refined fuels rose 11.5% by volume and 79.3% in value.

Inflation also accelerated, with consumer prices rising 5.08% in September from a year earlier, compared with 4.89% in August. Industrial production increased 16.7% year on year in September.

Total investment during the first nine months rose 16.7% from a year earlier as Vietnam stepped up public spending on infrastructure. Foreign investment inflows increased 12.1% to $21.1 billion.

The Asian Development Bank last week raised its forecast for Vietnam's economic growth this year to 7.8% from 7.2%, saying near-term prospects remained robust because of continued manufacturing growth, strong domestic consumption and sustained foreign direct investment.

However, it said "weaker global demand and heightened external uncertainty could weigh on growth, while higher energy prices and tighter global financial conditions could add to inflation and exchange-rate pressures."

Laura Schwartz, senior Asia analyst at risk intelligence company Verisk Maplecroft, said concerns were increasing that Vietnam's economy could be running too hot as inflation accelerates.

"Potential electricity shortfalls in the near- and mid-term will also pose significant challenges," she added.