Vietnam Enjoys Big Jump in Exports, Industrial Production

Vietnam’s industrial production and exports shot up in July from a year earlier, government data showed on Monday.

Exports in July were estimated to have risen just over 19% this month from a year earlier to $35.92 billion, the General Statistics Office (GSO) said in a report.

And an index for industrial production rose by 11.2% in July from a year earlier, the GSO said, adding to signs that growth is accelerating in the Southeast Asian nation.

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Vietnam has been seeking to lift economic growth to meet this year’s GDP growth target of 6% to 6.5%, with the government keeping policy settings accommodative and boosting public investment.

“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,” Oxford Economics said in a note.

The country recorded annual GDP growth of 6.93% in the second quarter, up from 5.87% in the first quarter.

Oxford Economics expects GDP growth to come in at 5.9% this year, with the central bank’s discount rate remaining 3.0%.

Imports in July rose 24.7% from a year earlier to $33.8 billion, resulting in a trade surplus of $2.12 billion for the month, the GSO said.

A sharp rise in imports could be a signal of future strength in industrial production if firms import more materials and equipment for their operations.

The GSO said consumer prices in July rose 4.36% from a year earlier. The government has said it wants to keep inflation below 4.5% this year.

Oxford Economics said it doesn’t expect full-year inflation to move above the target ceiling, “though there are upside risks in the near-term from the sudden surge of credit in June”.