Growth in Vietnam slows down as demand weakens: World Bank

21 Nov '22

2 min read

Pic: Shutterstock

The growth of industrial production and retail sales in Vietnam witnessed a slower pace in October this year due to weakening demand at home and abroad, according to the World Bank (WB), which said in its recent Vietnam Macro Monitoring report that industrial production in October grew by 6.3 per cent year on year (YoY)—lower than 13 per cent in September.

The low growth rate was partly attributed by the World Bank to the diminishing low-base effect and predominantly to the shrinking demand from overseas, caused by the slowing down of the European Union (EU), US and Chinese economies.

Retail sales in the country grew by 17.1 per cent YoY compared to 36.1 per cent in September.

Export growth rate moderated from 10.3 per cent to 4.8 per cent last month despite a trade surplus of $2.3 billion. Imports, meanwhile, accelerated with a growth rate of 7.1 per cent.

Inflation, measured by consumer price index, rose from 3.9 per cent in September to 4.3 per cent in October, slightly overshooting the target of 4 per cent set by the State Bank of Vietnam (SBV).

The total registered foreign investment capital jumped to $3.7 billion, 122 per cent higher than the figure in October last year.

The World Bank also suggests direct sales of foreign currency to stabilise exchange rates to be used wisely to preserve vital foreign reserves.

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