Vietnam’s key economic indicators saw moderated growth in August, according to government data released on Friday. Despite the slower pace, the country’s export-driven economy remained strong, supported by a robust global electronics cycle. Exports increased by 14.5% in August compared to the same period last year, reaching US$37.59 billion. This growth was driven by shipments of textiles and machinery. Imports rose by 12.4% annually, according to the General Statistics Office (GSO). Both figures, while solid, were lower than July’s growth rates, when exports surged 19.1% and imports climbed 24.7%. The monthly trade surplus widened to $4.53 billion in August, up from $2.12 billion in July.
Similarly, industrial production grew 9.5% in August, a slight slowdown from the 11.1% growth seen in July. Oxford Economics noted that the global electronics cycle continues to bolster exports and industrial production, suggesting continued growth for the remainder of the year. However, domestic sectors, particularly banking and real estate, remained weaker compared to pre-pandemic levels.
Retail sales increased by 8% in August, down from 9.4% in July, while inflation slowed significantly to 3.45% in August, from 4.36% in July, staying below the government’s 4.5% target for the year. Vietnam remains a key hub for multinational manufacturing, especially for smartphones, electronics, and garments. Foreign investment inflows rose by 8% from January to August compared to the same period last year, though there were signs of cooling in future investments, with foreign investment pledges slowing to 7% growth, down from 11% in the previous period.
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