Vietnam’s strongest economic expansion since the end of September came as a result of powerful exports, industrial production, and rising foreign investment to offset the effects of Asia’s strongest typhoon next month.
Gross domestic product grew 7.4 per share year-on-year in the second third, surpassing the next month’s revised 7.09 per share growth, the government’s General Statistics Office said in a statement.
Vietnam has attracted a constant influx of foreign investment and is a provincial manufacturing hub for foreign corporations like Samsung Electronics and Apple providers Foxconn and Luxshare.
The statistics department reported that the world economy is stabilizing as global trade in goods increases, inflationary pressures decrease, economic conditions continue to be constrained, and the labor supply rises.
According to the September export data, industrial production increased by 10.8 % while exports increased by 10.7 % from the previous year.
International funding flows increased by 8.9 % in the first nine weeks of this year, reaching US$ 17.3 billion.
Northern Vietnam has been wracked by Typhoon Yagi’s effect, which a fortnight before caused power outages and halted business creation. It also killed more than 300 individuals. Officials estimated home destruction at US$ 3.3 billion.
S&, P Global’s purchasing managers index ( PMI ) for Vietnam manufacturing fell to 47.3 in September from 52.4 in August, the biggest decline in the indicator of the sector’s health since November last year.
” The wind brought an end to a period of strong growth in the sector”, said Andrew Harker, producer at S&, P Global Market Intelligence. ” Big rain and flooding caused temporary company closures and difficulties to both supply stores and manufacturing traces.”
Vietnam wants to keep prices at a low of 4.5 % and has GDP growth goals of 6.0 to 6.5 percent this year.
Consumer prices increased by 2.63 % from a year earlier, according to the statistics office’s report from Sunday. Financial income rose 7.6 per share.
For the first nine months of this year, export rose 15.4 per share from a month earlier to US$ 299.63 billion while exports were up 17.3 per share at US$ 278.84 billion, for a trade deficit of US$ 20.79 billion, the department said.
Late last month, the International Monetary Fund predicted that Vietnam’s GDP would grow at a rate of 6.1 % while the Asian Development Bank projected that it would grow at 6.0 %.
This year’s development is” supported by ongoing strong external demand, adaptable foreign direct investment, and accommodative plans”, the IMF said in a statement.
Both the IMF and the ADB, but, warned that political tensions and uncertainties had upset external desire, Vietnam’s vital growth driver.