Vietnam: Industrial output records quickest growth since February in December
December 29, 2020
Industrial output rose 8.2% in year-on-year terms in December, which was above November's 6.9% increase. December's print marked the strongest expansion since February. The reading reflected a broad-based uptick in output, with activity in the manufacturing, electricity and mining and quarrying sub-sectors all improving in December.
Meanwhile, the trend improved significantly, with the annual average growth of industrial production coming in at 2.6% in December, up from November's 2.0% reading.
This year, industrial production should accelerate from 2020’s slowdown 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. Moreover, the recent signing of the RCEP trade pact that includes China, Korea and Japan is a further boost to the industrial sector in the coming years. However, uncertainty regarding the evolution of the pandemic and the rollout of vaccines across key international markets clouds the outlook.