Vietnam Industry July 2020

Vietnam

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.

FocusEconomics Consensus Forecast participants estimate that industrial output will grow 3.9% in 2020, which is up 1.2 percentage points from last month’s forecast. For 2021, panelists expect industrial production to expand 8.6%.


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Vietnam Industry July 20 20 0

Note: Year-on-year variation of industrial production index in %.
Source: General Statistics Office of Vietnam (GSO) and FocusEconomics calculations.


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