HANOI, Dec 24: Vietnam’s economy grew about 8.4 per cent this year, but inflation rose even faster, with prices shooting up 12.6 per cent in 2007, state media quoted the communist government as saying on Monday.

The economic growth estimate sets a new record for Vietnam, which joined the World Trade Organisation at the start of the year, Planning and Investment Minister Vo Hong Phuc told a cabinet meeting, state media said.

Foreign direct investment pledges leapt to over 20 billion dollars for the year, up from 12 billion dollars in 2006, Phuc said at the meeting on Sunday according to the Sai Gon Giai Phong (Liberated Saigon) newspaper.

Export revenues -- mainly from oil, textiles and footwear, electronics, seafood, rice and coffee -- reached 48.3 billion dollars, but the trade deficit hit a new peak of 12.4 billion dollars, doubling last year’s gap, it said.

The newspaper report said the United States had now replaced the European Union as Vietnam’s top export market, with the economies accounting for 22 and 19 per cent of export revenues respectively.—AFP