Vietnam: Industrial production growth accelerates in August
August 29, 2017
Industrial production expanded 8.4% over the same month last year in August, up from July’s 8.1% rise. All the major sub-components of industrial production, except for mining and quarrying, recorded an increase. Manufacturing output expanded at the fastest pace, while growth rates in electricity and gas, and water supply, sewerage, waste management and remediation services were not far behind. The mining and quarrying sub-component represents a long-term drag on industrial production, having contracted year-on-year every month since December 2015. This is likely due to a combination of low coal prices, a higher resources tax introduced in July 2016 and higher production costs due to the depletion of easily accessible coal layers.
In month-on-month terms, industrial production climbed 3.9% in August, a healthy increase from the 1.4% rise recorded in July and driven by a 6.2% month-on-month increase in manufacturing output. Average annual growth of industrial production, meanwhile, inched up to 7.6% in August (July: +7.5%).
Author: Edward Gardner, Economist