Vietnam: Industrial output deteriorates in August
August 29, 2020
Industrial production fell 0.6% year-on-year in August (July: +1.8% yoy), chiefly due to weaker mining activity and stagnant manufacturing.
The trend pointed down, with the annual average growth of industrial production coming in at plus 4.1% in August, down from July’s plus 5.0%.
Looking ahead, industrial production should recover as economic activity ramps up abroad. Moreover, the underlying strength of Vietnam’s industrial sector remains intact despite Covid-19: Vietnam is an attractive low-cost base for manufacturing firms, including those looking to relocate from China due to the U.S.-China trade spat, thanks to a cheap workforce and business-friendly government.