Vietnam Industry March 2022

Vietnam

Vietnam: Industrial output in March records quickest growth since April 2021

March 30, 2022

Industrial output increased 21.1% in year-on-year terms in March, which was above February's 18.2% increase. The figure marked the best result since April 2021. Looking at the details of the release, March's pickup was broad-based, with the manufacturing, electricity and mining and quarrying sub-sectors all accelerating.

Meanwhile, the trend improved sizably, with the annual average growth of industrial production coming in at 4.8%, up from February's 3.5% reading.

Looking ahead, industrial activity this year is projected to grow even faster from 2021’s reading, as pandemic restrictions are gradually removed. Moreover, 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, the high number of new daily Covid-19 infections, rising prices of raw materials, and lingering supply chain bottlenecks will pose a challenge to Vietnam’s industrial recovery.

FocusEconomics Consensus Forecast participants estimate that industrial output will grow 10.5% in 2022, which is unchanged from last month’s forecast. For 2023, panelists expect industrial production to expand 8.3%.


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Vietnam Industry March 2022

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


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