29-7-2024 (HANOI) Vietnam’s economy has shown remarkable resilience and growth, with July witnessing significant increases in both goods exports and industrial production compared to the previous year. The latest government data, released on Monday, paints a picture of accelerating economic expansion in this Southeast Asian nation.
According to the General Statistics Office (GSO), exports in July are estimated to have surged by an impressive 19.1% year-on-year, reaching a substantial $35.92 billion. This robust export performance is complemented by a notable 11.2% increase in the industrial production index over the same period.
These figures come as welcome news for Vietnamese policymakers who have been actively working to boost economic growth to meet the ambitious GDP growth target of 6.0%-6.5% for the year. The government’s strategy of maintaining accommodative policy settings and ramping up public investment appears to be bearing fruit.
Economic analysts are optimistic about Vietnam’s prospects. Oxford Economics, in a recent note, stated, “We believe the ongoing upturn in the global electronics cycle will continue to support both exports and industrial production for the rest of the year.” This upbeat outlook is further bolstered by Vietnam’s strong GDP growth of 6.93% in the second quarter, a significant improvement from the 5.87% recorded in the first quarter.
The import sector also saw substantial growth, with July imports rising by 24.7% compared to the previous year, totalling $33.80 billion. This resulted in a trade surplus of $2.12 billion for the month. The sharp rise in imports could be interpreted as a positive indicator of future industrial strength, potentially signalling increased investment in materials and equipment by firms.
On the inflation front, the GSO reported that consumer prices in July rose by 4.36% year-on-year. While this figure is approaching the government’s inflation target ceiling of 4.5% for the year, Oxford Economics remains confident that full-year inflation will stay within bounds. However, they caution about potential “upside risks in the near-term from the sudden surge of credit in June”.
