Vietnam Industry December 2019

Vietnam

Vietnam: Industrial production growth picks up in December

December 29, 2019

Industrial production rose 6.2% in December year-on-year, up slightly from November’s revised 5.5% expansion (previously reported: +5.4% in November year-on-year). December’s uptick was driven by a rebound in the mining and quarrying sector and faster growth in the manufacturing sector. Over 2019 as a whole, industrial production expanded an impressive 9.1%, comparing extremely favorably to regional peers.

Industrial production growth is forecast to remain elevated in 2020, 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. However, due to its open nature, the economy will remain vulnerable to a potential global economic slowdown, while possible U.S. tariffs would also hurt industrial activity.

FocusEconomics Consensus Forecast participants estimate that industrial output will grow 9.1% in 2020, which is unchanged from last month’s forecast. For 2021, panelists also expect industrial production to expand 9.1%.


Author:, Economist

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Vietnam Industry December 2019

Note: Year-on-year variation of industrial production index in %.
Source: General Statistics Office of Vietnam (GSO) and FocusEconomics calculations.


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