Brighter outlook for economy

Industrial production in August increased by 4.5% over July, 10.6% over August 2008 and 5.6% year-on-year. Most economic sectors posted a higher growth rate than July with the state-run economic sector, the non-state sector and foreign-invested sector up 1.9%, 7.9% and 6% respectively.

Growth of agricultural production followed the 100.4% and 3.2% increases in the yield of the summer-fall rice crop and aquatic production year-on-year. However, Vietnam’s 2009 export turnover is down by 14.2% year-on-year to U$37.3 billion with August turnover at US$4.7 billion, down 2.2% from July. Shrinking export volumes were recorded in crude oil, textile-apparel and footwear. The export revenue into key markets witnessed an all-out decline.

Import revenue was in the same boat with a fall of 1.9% month-on-month to USD 6.2 billion in August, marking a 28.2% year-on-year decrease. The trade deficit last month hit USD 1.5 billion, bringing the January-August deficit to USD 5.1 billion, around 14% of the eight-month export revenue respectively.