Vietnam’s industrial production exhibited high resilience despite Covid-19 outbreak: WB

Thứ Hai, 14/6/2021| 17:17

According to the World Bank, Vietnam’s industrial production in May expanded by an estimated 1.6 percent month on month and by 11.2 percent year on year despite the fourth Covid-19 outbreak. The PMI index remained comfortably expansionary at 53.1 in May, but was slightly lower than the 54.7 figure recorded in April.

The fourth Covid-19 outbreak that started in late April 2021 has led to the sharpest increases in locally transmitted infections since the onset of the pandemic. 

The authorities imposed stringent mobility restrictions in affected provinces, including in Vietnam’s three major cities, and shut down several factories and industrial zones in the northern provinces of Bac Giang and Bac Ninh.

 

Vietnam’s industrial production exhibited high resilience despite Covid-19 outbreak: WB

Illustration Photo

In May, Vietnam’s industrial production exhibited high resilience but retail sales dropped as they were affected by many coronavirus restrictions.

WB data shows retail sales dropped  by 3.1 percent month on month in May, due to the weakening of domestic demand caused by the new restrictions to help stop the spread of Covid-19.

Looking ahead, the World Bank report also indicates that close attention should be paid to the evolution of industrial production and retail sales as both could be further affected by the Covid-19 fourth outbreak. Exports may also suffer from the slowdown of activities in some industrial parks.

If the current outbreak is not contained quickly, the government may wish to consider adopting a more accommodative fiscal stance to support affected people and businesses and to stimulate domestic demand, concludes the World Bank.

Top