UPDATE 2-Vietnam's growth slows in first half of 2008

(Adds details, comments paragraphs 11-14)

By Ho Binh Minh

HANOI, July 1 (Reuters) - Vietnam's economic growth slowed in the first half to an estimated 6.5 percent compared with the same period of 2007, raising hopes that overheating pressures after rapid credit growth and soaring inflation would ease.

Industrial, construction and service sectors, the main components of Vietnam's gross domestic product, grew at a slower pace, and only agricultural growth increased, the General Statistics Office said in its monthly report on Tuesday.

The $71 billion economy, driven by the industrial, construction and service sectors, expanded 7.91 percent in the first six months of last year, according to revised data.

With annual inflation in double digits for eight consecutive months and a tripling of the trade deficit, economists have argued a slowdown in growth would help cool the economy, one of the fastest-expanding after China.

"Clearly we have been looking for a slowdown and it seems to be materialising, something that should be taken positively," said Prakriti Sofat, an Asia economics analyst with HSBC in Singapore.

"The other economic data should start improving and overall, things are moving in the right direction. It's important for Vietnam to give up short-term growth for long-term benefits."

The government has cut its 2008 growth target to 7 percent from 8.5-9 percent.