HANOI: Vietnam posted its strongest financial progress in two years within the quarter ending in late September, as sturdy exports and industrial manufacturing and rising international funding offset the results of final month’s strongest Asian hurricane to this point this month. ‘yr.
Gross home product grew 7.4% year-on-year within the third quarter, outpacing the second quarter’s revised enlargement of seven.09%, the Government’s General Statistics Office mentioned in a report.
Vietnam is a regional manufacturing hub for multinationals together with Samsung Electronics and Apple suppliers Foxconn and Luxshare, and has attracted a gradual inflow of international funding.
“The world economic system is stabilizing as world commerce in items improves, inflationary pressures ease, monetary situations proceed to ease and labor provide will increase,” the statistics workplace mentioned.
September knowledge exhibits exports elevated 10.7% from a yr earlier, whereas industrial manufacturing elevated 10.8%.
Foreign funding inflows within the first 9 months of this yr elevated 8.9% from a yr earlier to $17.3 billion.
North Vietnam is reeling from the influence of Typhoon Yagi a month in the past, which killed greater than 300 individuals, disrupted electrical energy provides and halted industrial manufacturing. Authorities estimated property injury at $3.3 billion.
S&P Global’s buying managers’ index (PMI) for Vietnam’s manufacturing sector fell to 47.3 in September from 52.4 in August, the most important drop within the sector well being indicator since November final yr.
“The storm ended a interval of sturdy progress within the sector,” mentioned Andrew Harker, director of S&P Global Market Intelligence. “Heavy rain and flooding have precipitated non permanent enterprise closures and delays in each provide chains and manufacturing strains.”
Vietnam is aiming for GDP progress of between 6.0% and 6.5% this yr and goals to maintain inflation under 4.5%.
In September, shopper costs rose 2.63 % from a yr earlier, the statistics workplace mentioned in its Sunday report. Retail gross sales elevated 7.6%.
For the primary 9 months of this yr, exports elevated 15.4% from a yr earlier to $299.63 billion, whereas imports elevated 17.3% to $278.84 billion, for a commerce surplus of $20.79 billion, the workplace mentioned.
The International Monetary Fund late final month forecast Vietnam’s GDP progress at 6.1% this yr, whereas the Asian Development Bank estimated it at 6.0%.
This yr’s progress is “supported by sturdy exterior demand, resilient international direct funding and accommodative insurance policies,” the International Monetary Fund mentioned in a report.
Both the IMF and ADB, nonetheless, warned that geopolitical tensions and uncertainties might harm exterior demand, Vietnam’s primary progress driver.
