Vietnam: Industrial output growth slows in July
July 29, 2020
Industrial output grew 1.1% year-on-year in July (June: +7.2% yoy). Looking at the details of the release, manufacturing production softened in July, and electricity production output also decelerated. Meanwhile, mining and quarrying production declined at a softer rate. The trend pointed down, with the annual average growth of industrial production coming in at plus 5.0%, down from June's 5.7% reading.
Looking ahead, industrial production should recover as economic activity ramps up abroad. Moreover, the underlying strength of Vietnam’s industrial sector remains intact despite Covid-19: Vietnam is an attractive low-cost base for manufacturing firms, including those looking to relocate from China due to the U.S.-China trade spat, thanks to a cheap workforce and business-friendly government.