Vietnam: Industrial production growth ebbs in October
Industrial production rose 9.2% in October year-on-year, down from September’s revised 9.9% growth (previously reported: 10.2% yoy). October’s deceleration was driven by slower growth in the manufacturing and water supply sectors. That said, manufacturing readings continue to fare extremely favorably compared to regional peers.
Industrial production growth should remain buoyant going forward, spearheaded by a burgeoning manufacturing sector. 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.