Vietnam: Industrial output growth loses pace in May
May 29, 2018
Vietnam’s industrial sector grew robustly in May but lost some pace from the previous month. Output in the sector grew 7.1% in annual terms in May, following an annual expansion of 9.4% in April.
A breakdown of the data shows the manufacturing sector lost steam, growing 9.1% year-on-year in May following growth of 12.3% yoy in April. The water supply, sewerage, waste management and remediation activities sector expanded at roughly the same pace as the previous month, growing 8.2% yoy in May compared to 8.3% yoy in April. Conversely, electricity and gas supply growth picked up, rising from 9.6% yoy in April from 11.2% yoy in May. Mining and quarrying output contracted more sharply, falling 7.6% yoy in May which followed a 5.0% yoy drop in the previous month.
In month-on-month terms, industrial production growth picked up slightly from 1.5% in April to 2.2% in May. Annual average growth in industrial output in May remained put at April’s 11.6%.
Vietnam Industrial Production Forecast
FocusEconomics Consensus Forecast participants estimate that industrial output will grow 8.7% in 2018, which is up 0.6 percentage points from last month’s forecast. For 2019, panelists expect industrial production to expand 8.6%.
Author: Nihad Ahmed, Economist