Vietnam Industry September 2020

Vietnam

Vietnam: Industrial output rebounds in September

September 29, 2020

Industrial output grew 3.8% compared to the same month a year earlier in September, which contrasted August's 0.6% decrease. September's rebound was largely due to an upturn in manufacturing and electricity output.

Meanwhile, the trend pointed down, with the annual average growth of industrial production coming in at plus 3.6%, down from August's 4.1% 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. 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 4.8% in 2020, which is up 1.2 percentage points from last month’s forecast. For 2021, panelists expect industrial production to expand 8.4%, which is up 0.5 percentage points from last month’s forecast.


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Vietnam Industry September 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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