Vietnam Industry November 2020

Vietnam

Vietnam: Industrial output records quickest growth since February in November

November 29, 2020

Industrial production increased 9.2% year-on-year in November (October: +3.9% yoy). November's reading marked the best result since February. The upturn was largely due to faster manufacturing production growth and a softer decline in the mining sector.

Meanwhile, annual average industrial production growth rose to 2.0% in November (October: +1.4%), signaling an improving trend in the industrial sector.

Next year, industrial production should continue to expand strongly 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. The recent trade deal with the EU is a further boost to the industrial sector. However, the possibility of flare-ups in infections, both in Vietnam and abroad, is a risk to the outlook.

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


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Vietnam Industry November 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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