Production in Ho Chi Minh City increased to the highest level in 5 years

According to data from Ho Chi Minh City Statistics, in the first 5 months of the year, the processing and manufacturing industry continued to play a leading role, increasing by 11.8%, higher than the general growth rate of the entire industry. This is also the first time processing and manufacturing IIP increased by double digits in the first 5 months of the year compared to the same period, starting from Covid-19.

Ho Chi Minh City Statistics assess that industrial production “continues to maintain a stable growth rate” thanks to the ability to flexibly adapt to market fluctuations and the positive impact of strong public investment and support policies.

As a result, the consumption index of the entire processing and manufacturing industry in 5 months increased by 15.8%, with a number of thriving industries such as manufacturing beds, cabinets, tables, and chairs (73.2%); chemicals (43.9%); electrical equipment (29.2%); electronics (25.2%).

The city’s exports also maintained growth at 5.3% over the same period, reaching 39.47 billion USD. Imports reached nearly 44.3 billion USD, an increase of nearly 11%, signaling future order prospects.

S&P Global’s May purchasing managers index (PMI) survey also recorded a rebound in the number of new orders, helping Vietnam’s manufacturing industry grow in the middle of the second quarter. PMI last month increased to 52.8 points, from 50.5 in April, the highest since February.

The American data analysis firm estimates that business conditions have generally improved for 11 consecutive months. However, Mr. Andrew Harker, Director of Economics at S&P Global Market Intelligence, noted that there should be a cautious view on sustainability.

Because the recent increase in orders is partly due to buyers’ hoarding efforts, before being interrupted by the Iran war. At the same time, manufacturing enterprises are under pressure on input prices, with costs (mainly fuel and transportation) increasing continuously for 4 months.

“How events in other parts of the world will unfold will continue to be the key factor determining the performance of the manufacturing industry in the coming months,” commented Mr. Andrew Harker.