Vietnam Industry October 2020

Vietnam

Vietnam: Industrial output picks up in October

October 29, 2020

Industrial output grew 5.4% compared to the same month a year earlier in October, up from September’s 4.8% increase. October’s acceleration was largely due to faster growth in manufacturing, which more than offset weaker momentum in the electricity sector.

Meanwhile, the trend pointed down, with the annual average growth of industrial production coming in at plus 3.3%, down from September's 3.7% reading.

Next year, industrial production should continue to 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. However, the possibility of flare-ups in infections, both in Vietnam and abroad, is a risk to the sector.

FocusEconomics Consensus Forecast participants estimate that industrial output will grow 8.0% in 2021, which is down 0.4 percentage points from last month’s forecast. For 2022, panelists expect industrial production to expand 8.1%.


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Vietnam Industry October 20 20

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


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