Vietnam: Industrial output growth gains momentum in April
April 29, 2021
Industrial production rose 24.1% year-on-year in April (March: +6.1% yoy). Looking at the details of the release, April's pick up was broad-based, with manufacturing, electricity and mining and quarrying sub-sectors all accelerating.
Meanwhile, the trend improved significantly, with the annual average growth of industrial production coming in at plus 6.6% in April, up from March's 3.4%.
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.
Author: Stephen Vogado, Economist