HANOI - Vietnam's gross domestic product (GDP) rose by 5.89 percent in 2011, lower than 6 percent set by the government and 6.78 percent in the previous year, reported the Vietnam General Statistics Office (GSO) on Friday.

The country's consumer price index (CPI), which reflects the inflation rate, hit 18.13 percent this year, a slight increase over the set target of 18 percent, said the report.

According to GSO, if measures to contain inflation and spur production continue to be flexibly implemented, GDP could reach 6- 6.5 percent and CPI could dip to 10 percent for 2012.

In its 2011 Socio-economic Statistics, GSO reported that disbursed social investment is estimated to total 877.9 trillion Vietnamese dong ($41.75 billion), accounting for 34.6 percent of GDP. The figure marks an increase of 5.7 percent over 2010.

Industry and construction, which accounted for 40 percent of the economy, grew by 5.53 percent, while agro-forestry-fisheries sector, which accounted for 22 percent of the GDP, increased by 4 percent, in 2011.

Insiders said that the growth rate achieved is incredible in the context that Vietnamese businesses had to struggle with higher costs to maintain production while apply advanced technologies during the year.

According to the GSO, the country's population is estimated to have risen by 1.04 percent from last year, to reach 87.84 million, with females accounting for 50.5 percent, representing an increase of 0.99 percent. The number of urban dwellers is 26.88 million, making up 30.6 percent of the overall population.