Vietnam’s monthly economic overview (May, 2024)

An overview of the agro-forestry-fisheries sector

Industrial production

Industrial production in May continued to maintain a more positive growth trend compared to the previous month. The Industrial Production Index (IIP) for May 2024 is estimated to have increased by 3.9% compared to the previous month and by 8.9% compared to the same period last year.

Overall, in the first five months of 2024, the IIP is estimated to have increased by 6.8% compared to the same period last year (in the same period of 2023, it decreased by 2.0%). Specifically, the manufacturing and processing sector increased by 7.3%, contributing 6.4 percentage points to the overall increase; the electricity production and distribution sector increased by 12.7%, contributing 1.1 percentage points; the water supply, waste management, and waste treatment sector increased by 6.3%, contributing 0.1 percentage points; while the mining sector decreased by 5.2%, reducing the overall increase by 0.8 percentage points.

The Industrial Production Index for the first five months of 2024 compared to the same period last year increased in 55 localities and decreased in 8 localities across the country.

The number of workers employed in industrial enterprises as of May 1, 2024, increased by 1.0% compared to the same time last month and by 3.2% compared to the same time last year.

Business registration

In May, over 13,200 new businesses were established nationwide, a decrease of 13.7% compared to the previous month but an increase of 9.2% compared to the same period last year. Additionally, 6,749 businesses resumed operations, down 18.8% from the previous month but up 13.4% from the same period in 2023. There were 5,303 businesses that registered for temporary suspension, a decrease of 30.4% from the previous month and a decrease of 1.1% from the same period last year. Meanwhile, 4,550 businesses ceased operations to await dissolution procedures, a decrease of 2.3% from the previous month and a decrease of 3.5% from the same period last year. Lastly, 1,538 businesses completed dissolution procedures, an increase of 14.4% from the previous month and an increase of 25.8% from the same period last year.

Overall, in the first five months of 2024, the country saw 98,800 businesses either newly registered or resuming operations, an increase of 4.1% compared to the same period last year, averaging 19,800 businesses per month. The number of businesses exiting the market was 97,300, an increase of 10.5% compared to the same period last year, averaging 19,500 businesses per month.

Investment

State budget investment in May 2024 is estimated to reach 48.2 trillion VND, an increase of 3.1% compared to the same period last year. For the first five months of 2024, the total state budget investment is estimated at 190.6 trillion VND, achieving 26.6% of the annual plan and increasing by 5.0% compared to the same period last year (in the same period of 2023, it was 24.8% and increased by 21.5%).

By May 20, 2024, total foreign investment registered in Vietnam, including new registrations, adjusted capital, and the value of capital contributions and share purchases by foreign investors, reached nearly 11.07 billion USD, an increase of 2.0% compared to the same period last year.

Foreign direct investment (FDI) implemented in Vietnam in the first five months of 2024 is estimated at 8.25 billion USD, an increase of 7.8% compared to the same period last year.

Regarding Vietnamese investment abroad in the first five months of 2024, there were 42 new projects granted investment certificates with a total Vietnamese investment capital of 103.5 million USD, a decrease of 27.5% compared to the same period last year. Additionally, there were 10 projects with adjusted capital, with an increase of 32.5 million USD, a decrease of 81.3%. Overall, in the first five months of 2024, total Vietnamese investment abroad (both new and adjusted) reached 136.1 million USD, a decrease of 57.0% compared to the same period last year.

Trade

Retail sales of consumer goods and services

The total retail sales of goods and consumer service revenue at current prices in May 2024 is estimated to reach 519.8 trillion VND, an increase of 9.5% compared to the same period last year. Overall, in the first five months of 2024, the total retail sales of goods and consumer service revenue at current prices is estimated to reach 2,580.2 trillion VND, an increase of 8.7% compared to the same period last year (in the same period of 2023, it increased by 12.3%). When price factors are excluded, the increase is 5.2% (in the same period of 2023, it increased by 9.3%).

Exports & imports of goods

In May, the total export and import turnover of goods is estimated to reach 66.62 billion USD, an increase of 9.1% compared to the previous month and an increase of 22.6% compared to the same period last year.

– Exports of goods

The export turnover of goods in May 2024 is estimated to reach 32.81 billion USD, an increase of 5.7% compared to the previous month and an increase of 15.8% compared to the same period last year. Overall, in the first five months of 2024, the export turnover of goods is estimated to reach 156.77 billion USD, an increase of 15.2% compared to the same period last year. Of this, the domestic economic sector achieved 43.69 billion USD, an increase of 20.5%, accounting for 27.9% of the total export turnover; the foreign-invested sector (including crude oil) reached 113.08 billion USD, an increase of 13.3%, accounting for 72.1%.

Regarding the structure of export goods in the first five months of 2024, processed industrial goods are estimated to reach 137.39 billion USD, accounting for 87.7%.

– Imports of goods

The import turnover of goods in May 2024 is estimated to reach 33.81 billion USD, an increase of 12.8% compared to the previous month and an increase of 29.9% compared to the same period last year. Overall, in the first five months of 2024, the import turnover of goods is estimated to reach 148.76 billion USD, an increase of 18.2% compared to the same period last year. Of this, the domestic economic sector achieved 54.95 billion USD, an increase of 24.2%, while the foreign-invested sector reached 93.81 billion USD, an increase of 14.9%.

Regarding the structure of import goods in the first five months of 2024, production materials are estimated to reach 139.89 billion USD, accounting for 94%.

– Export and import market of goods: In the first five months of 2024, the United States is the largest export market of Vietnam with an estimated turnover of 44.0 billion USD. China is the largest import market of Vietnam with an estimated turnover of 54.9 billion USD.

– Trade balance: In May, the trade surplus is estimated at 1.0 billion USD. Overall, in the first five months of 2024, the trade balance of goods is estimated to have a surplus of 8.01 billion USD (compared to a surplus of 10.2 billion USD in the same period last year). Of this, the domestic economic sector runs a trade deficit of 11.26 billion USD, while the foreign-invested sector (including crude oil) maintains a trade surplus of 19.27 billion USD.

Consumer Price Index, Gold Price Index and US Dollar

In May 2024, the Consumer Price Index (CPI) increased by 0.05% compared to the previous month. Compared to December 2023, the CPI in May increased by 1.24%, and compared to the same period last year, it increased by 4.44%. The average CPI for the first five months of 2024 increased by 4.03% compared to the same period last year, while the core inflation rate increased by 2.78%.

The gold price index in May 2024 increased by 3.81% compared to the previous month, by 21.47% compared to December 2023, and by 32.18% compared to the same period last year. The average gold price index for the first five months of 2024 increased by 22.95%.

The US dollar price index in May 2024 increased by 1.15% compared to the previous month, by 4.21% compared to December 2023, and by 7.85% compared to the same period last year. The average US dollar price index for the first five months of 2024 increased by 5.24%.

Source: GSO

Compiled by Vietnam Business Information