Employees work at a shoe factory for export in Hanoi. — Reuters
HANOI: Vietnam’s exports in the first five months of this year fell 11.6% from a year earlier to US$136.17bil (RM626bil), government data shows, as weakened external demand weighs on its manufacturing-led economy.
Its industrial output in the January to May period fell 2% from a year earlier, the General Statistics Office (GSO) said in a report, adding that average consumer prices in the period rose 3.55% from a year earlier.
The latest data underlines a slowdown in economic growth for Vietnam, a key regional manufacturing centre, due largely to subdued global demand.
Imports in the first five months of this year fell 17.9% from a year earlier to US$126.37bil (RM581bil), resulting in a trade surplus of US$9.8bil (RM45bil), the GSO said.
The sharp imports decline could indicate a further slowdown ahead in industrial production, as businesses reduce procurement of raw materials and equipment.
Vietnam is a key exporter of electronics, garments and textiles, footwear and wooden items, including for top global brands.
Deputy Prime Minister Le Minh Khai earlier this month said the economy would face unfavourable external conditions during 2023.
Vietnam is targeting growth of 6.5% this year, slower than the expansion of 8.02% in 2022. Vietnam’s gross domestic product (GDP) growth slowed to 3.3% in the first quarter from expansion of 5.9% in the fourth quarter of last year.
Oxford Economics yesterday said it had cut its forecast for Vietnam’s 2023 GDP growth to 3% from 4.2%.
“We think that easing global growth, including a fading recovery in China, mean that the depressing outlook for Vietnam’s exports has further to run, casting clouds over the prospects of any rebound in GDP growth,” it said in a note.
Exports in smartphones, Vietnam’s largest export earner, fell 16% in the January to May period to US$21.17bil (RM97bil), the GSO said.
In May, its total exports fell 5.9% from a year earlier, while imports were down 18.4%, the GSO added. — Reuters
