Vietnam's export, industrial production growth slows in August
text size

Vietnam's export, industrial production growth slows in August

Vietnamese people exercise at Lenin Park in Hanoi on June 16, 2024. (Photo: Reuters)
Vietnamese people exercise at Lenin Park in Hanoi on June 16, 2024. (Photo: Reuters)

HANOI: Growth in key economic indicators for Vietnam's trade-driven economy moderated in August, government data showed on Friday, but remained at robust levels as a stronger global electronics cycle supported activity.

Exports rose 14.5% in August from a year earlier to US$37.59 billion, led by shipments of textiles and machinery, and imports increased an annual 12.4%, the General Statistics Office (GSO) said in a report.

While solid, both growth rates were below those seen in July, when exports rose an annual 19.1% and imports surged 24.7%. That led to the monthly trade surplus widening to $4.53 billion August from $2.12 billion in July.

A similar trend was seen in industrial production, which increased 9.5% in August from a year earlier, slower than a revised 11.1% expansion in July, the GSO reported.

"The ongoing upturn in the global electronics cycle will continue to post solid exports and industrial production growth figures for the rest of the year," Oxford Economics said in a report.

However, it noted that domestic sectors of the economy were subdued compared to pre-pandemic levels as challenges from the banking and real estate sectors remained.

Retail sales rose 8% in August from a year earlier, slower than a 9.4% increase in July, the statistics office said.

Inflation slowed sharply to an annual 3.45% in August for 4.36% in July, to be comfortably below the 4.5% ceiling set by the government for this year.

Vietnam hosts major manufacturing operations of large multinationals, and is an important exporter of smartphones, electronics and garments.

Foreign investment inflows rose 8% in the January-August period compared to a year earlier, easing from an 8.4% increase in the January-July period.

There was also signs of a slowdown in future investments, with growth in foreign investment pledges slowing to an annual 7% for the January-August period from 11% in January-July.

Do you like the content of this article?
COMMENT (4)