As Vietnam’s economy still faces headwinds, its government should extend its economic support programme next year to allow its planned investments to be fully deployed, thereby supporting aggregate demand, according to the November 2023 edition of the World Bank’s monthly Vietnam Macro Monitoring report.

Due to a rise in production of key export items, the country’s industrial production index grew by 2.7 per cent in November. For example, textile production increased by 4.4 per cent month on month (MoM).

Prospects, however, remain subdued as the country’s purchasing managers’ index (PMI) remained in the contractionary territory in November to reach 47.3, the lowest level since May this year.

Monthly retail sales remained flat at 0.27 per cent in November, with retails sales growth averaging 7.5 per cent year on year (YoY) between August and November, well below the pre-pandemic growth rates of about 12 per cent annually.

Despite a small sequential fall in exports, the overall performance of goods exports and imports in the month was resilient amid recovering external demand, increasing by 6.7 per cent YoY and 5.1 per cent YoY respectively.

However, cumulative exports and imports for the year to November dropped by 5.9 per cent YoY and 10.7 per cent YoY respectively.

The consumer price index (CPI) inflation remained stable at 3.5 per cent in November compared with 3.6 per cent in October, well below the target level of 4.5 per cent, a news agency reported citing the World Bank report.

The government budget revenue collection during the first 11 months of the year fell by 6.2 per cent YoY amid a slowdown in economic activities.

Fibre2Fashion News Desk (DS)

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