Vietnam Industry June 2021

Vietnam

Vietnam: Industrial output growth dips in June

June 29, 2021

Industrial output expanded 4.5% year-on-year in June, which was a moderation from May’s 11.2% rise. June's reading was partly driven by a deterioration in manufacturing output. In addition, electricity production lost steam.

Meanwhile, annual average growth of industrial production was 7.7% in June, mirroring May's figure.

After last year’s slowdown, industrial production is projected to gain momentum on the back of returning demand from key international partners. Despite the ongoing Covid-19 pandemic, the underlying strength of Vietnam’s industrial sector remains intact: Vietnam is an attractive low-cost base for manufacturing firms, including those looking to relocate from China due to the U.S.-China trade tensions. That said, a relatively slow vaccine rollout, coupled with general uncertainty regarding the pandemic, pose a risk to the outlook.

FocusEconomics Consensus Forecast participants estimate that industrial output will grow 9.5% in 2021, which is down 0.1 percentage points from last month’s forecast. For 2022, panelists expect industrial production to expand 8.6%.


Author:, Economist

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Vietnam Industry June 2021

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


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