Vietnam: Industrial output growth improves in April
April 29, 2022
Industrial output rose 18.0% compared to the same month a year earlier in April, which was above March's 15.2% increase. The rise was largely driven by faster growth in manufacturing output. In contrast, electricity, mining and quarrying and water supply production fell.
Meanwhile, the trend pointed down, with the annual average growth of industrial production coming in at 4.0%, down from March's 4.4%.
Looking ahead, industrial activity growth this year is projected to accelerate markedly from 2021’s reading, as pandemic restrictions are removed. Moreover, Vietnam is an attractive low-cost base for manufacturing firms, including those looking to relocate from China due to U.S.-China trade tensions and ongoing tough Covid-19 measures in the Asian giant. Nevertheless, rising prices of raw materials, lingering supply chain bottlenecks and easing demand among major trade partners will pose a challenge to Vietnam’s industrial recovery.