NOVEMBERASIA BUSINESS OUTLOOK8NEWSROOMVietnam recorded a trade surplus of $2 billion in October, a decrease from September as import growth outpaced export growth, according to data from the General Statistics Office (GSO). The Southeast Asian nation, known as a major manufacturing hub, relies heavily on export-driven economic growth. In October, exports rose by 10.1 percent year-on-year, while imports increased by 13.6 percent.For the period from January to October, exports grew 14.9 percent compared to last year, reaching $335.586 billion, while imports rose by 16.8 percent, totaling $312.28 billion. In addition, industrial production in October increased by 7.0 percent year-on-year, down from 10.8 percent growth in September, indicating a slight slowdown in manufacturing output.Vietnam's Prime Minister recently stated that the government aims to achieve an annual growth rate above the projected 6.8 percent -7.0 percent for 2024. The country's third-quarter economic growth reached a two-year high of 7.4 percent. Meanwhile, inflation remains under control, with the consumer price index (CPI) rising 2.89 percent year-on-year in October, staying within the government's cap for 2024. Bank Negara Malaysia (BNM), Malaysia's central bank, has kept its benchmark interest rate steady at 3.00 percent during its final policy meeting of 2024, in line with market expectations. This interest rate stability has been maintained since May 2023, supported by positive economic growth and stable inflation.BNM cited resilient domestic expenditure and increased export activity as key drivers of economic activity. Inflation remains modest, with headline and core inflation averaging 1.8 percent year-to-date. Looking ahead, BNM expects manageable inflation in 2025, aided by easing global costs and the absence of significant domestic demand pressures. However, the bank cautioned that the inflation outlook may be influenced by upcoming government policies.This year, Malaysia's government reduced broad subsidies on diesel, electricity, and chicken, with plans to extend subsidy cuts to other widely used transport fuels by mid-2025. In its latest budget, the government also revised its 2024 economic growth forecast upwards to a range of 4.8 percent to 5.3 percent, an increase from the previous range of 4 percent to 5 percent.According to advance estimates, Malaysia's third-quarter GDP growth was 5.3 percent, showing a slight deceleration from 5.9 percent in the second quarter, yet supporting a positive economic trajectory into the new year. VIETNAM TRADE SURPLUS CROSSES $2B IN OCTOBER OWING TO IMPORT RELIANCEMALAYSIA CENTRAL BANK STEADIES INTEREST RATE AT 3 PERCENT TO CURB INFLATION
< Page 7 | Page 9 >