According to the General Statistics Office (GSO), in July, industrial production which can reflect many angles of the economy was better than the previous month.

The Index of Industrial Production (IIP) in July 2023 not only increased by 3.9% compared to the previous month but also increased by 3.7% compared to the same period last year. In particular, the IIP in July 2023 increased again in localities including Bac Ninh (up 23.8%), Thai Nguyen (9%), Vinh Phuc (5.8%), Binh Duong (2.3%), Ho Chi Minh City (1.9%), and  Long An (0.8%)

In the first seven months, the IIP of 49 provinces and centrally-run cities increased and that of 14 others across the country decreased.

Increased industrial production probably implied positive signals for domestic consumption and exports. Data from the GSO showed that Vietnam’s export turnover in July 2023 reached US$29.68 billion, up 0.8% compared to June. Meanwhile, foreign investment attraction for the first time this year increased by 4.5% from the same period last year, reaching nearly US$16.24 billion.

The figures are quite consistent with the data on the Purchasing Managers' Index (PMI) of Vietnam's manufacturing industry that S&P Global has just released.

Accordingly, Vietnam's PMI rose to 48.7 points in July from 46.2 points in June. Although the number was still below 50 points, which showed production declined for the 5th consecutive month, this decline was quite mild and lowest in this period.

Despite the modest increase in industrial production and exports, Vietnam’s tourism and services saw a positive recovery as the country welcomed more than 1 million international visitors in July, 6.5% higher than the previous month and 2.9 times higher than the same period last year.

In general, in the first seven months, Vietnam welcomed more than 6.6 million international visitors, 6.9 times higher than the same period last year.

Meanwhile, revenue from accommodation and food services in the first seven months of 2023 reached VND377.3 trillion (US$15.88 billion), accounting for 10.7% of the total retail sales of goods and services, up 16.3% over the same period last year. Tourism revenue reached VND18.6 trillion, accounting for 0.5% of total retail sales of goods and revenue of consumer services, up 53.6% over the same period last year.

Localities saw rising tourism revenues in the last seven months included Da Nang, up 99.7%; Hanoi 89.7%; Quang Ninh 82.5%; and Khanh Hoa 75.1%.

International organisations through their latest reports also forecast a more positive outlook for Vietnam's economy in the second half of the year.

Standard Chartered Bank forecast that Vietnam's economy will recover in the second half of 2023 with GDP growth predicted to reach 7% year-on-year, from 3.7% in the first half of the year.

According to the International Monetary Fund (IMF), Vietnam's economic growth will recover in the second half of 2023 thanks to the recovery of exports and loosening domestic policies.

Deputy Minister of Planning and Investment Tran Quoc Phuong said that, to overcome economic difficulties, it is necessary to implement drastic and effective solutions to speed up the disbursement of public investment, stimulate consumption and investment demand, and boost exports as they are important growth drivers of the economy.

VNA