Vietnam exports fall 11.6% to $136.17 billion in May

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Vietnam exports fall 11.6% to $136.17 billion in May

HANOI Vietnam's exports fell 11.6 per cent from a year earlier to $136.17 billion, government data showed, as weakened external demand weighs on its manufacturing-led economy.

Its industrial output in the January- May period fell 2 per cent from a year earlier, the GSO said, adding that average consumer prices in the period rose 3.55 per cent from a year earlier.

The latest data shows a slowdown in economic growth for Vietnam, a key regional manufacturing hub, due largely to subdued global demand.

Imports in the first five months of this year fell 17.9 percent from a year earlier to $126.37 billion, which resulted in a trade surplus of $9.8 billion.

Industrial production may have a further slowdown in the coming years, as companies reduce the purchase of raw materials and equipment. Vietnam is a leading exporter of electronics, garments and textiles, footwear, and wood items, including for top global brands.

The economy will face unfavourable external conditions during 2023, the Deputy Prime Minister Le Minh Khai said in a statement.

Vietnam is expecting to grow 6.5 per cent this year, less than the expansion of 8.02 per cent in 2022. The first quarter of Vietnam's GDP growth fell to 3.3 percent from a surge of 5.9 percent in the fourth quarter of last year.

Oxford Economics said on Monday that it had cut its forecast for Vietnam's GDP growth to 3.0 per cent from 4.2 per cent.

We think that easing global growth, including a fading recovery momentum in China, mean that the depressing outlook for Vietnam's exports has further to run, casting clouds over the prospect of any rebound in GDP growth, he said in a note.

exports of smartphones, Vietnam's largest export earner, fell 16 per cent in the January-May period to $21.17 billion, the GSO said.

In May, its total exports dropped 5.9 percent from a year earlier and imports were down 18.4 percent, the GSO said.