Vietnam Industry August 2020

Vietnam

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.

FocusEconomics Consensus Forecast participants estimate that industrial output will grow 3.6% in 2020, which is down 0.3 percentage points from last month’s forecast. For 2021, panelists expect industrial production to expand 7.9%.


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Vietnam Industry August 20 20

Note: Year-on-year variation of industrial production index in %.
Source: General Statistics Office of Vietnam (GSO) and FocusEconomics calculations.


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