Vietnam: Industrial output growth edges down in July but remains solid
July 28, 2017
Industrial production expanded 8.1% over the same month of the previous year in July, down from June’s 8.6% rise. All the major sub-components except for mining and quarrying recorded an increase. Electricity and gas output expanded at the fastest pace with growth in manufacturing, and water supply, sewerage, waste management and remediation services following not far behind. The continued contraction in mining and quarrying is likely due to a combination of low coal prices, a higher resources tax introduced in July 2016, and higher production costs as easily accessible coal layers have been depleted.
In month-on-month terms, industrial production 1.4% in July, a notable gain from the 0.4% rise recorded in June. Meanwhile, the average annual growth of industrial production inched up to 7.5% in July from 7.4% in June.
Author: Nihad Ahmed, Economist