Vietnam quarterly growth achieves two-year high on exports

Vietnam experienced its highest economic expansion in two years in the quarter ending in September, as robust exports and industrial output, along with increasing foreign investment, counteracted the impact of Asia's most powerful typhoon of the year last month.

According to a report by the government's General Statistics Office, the economy expanded by 7.4 per cent year-on-year in the third quarter, exceeding the previous quarter's 7.09 per cent growth.

Vietnam serves as a manufacturing center in the region for major multinational companies such as Samsung Electronics and Apple suppliers Foxconn and Luxshare, attracting a consistent flow of foreign investment.

"The world economy is stabilising as global trade in goods improves, inflationary pressures ease, financial conditions continue to loosen and labour supply increases," the statistics office said.

It was reported that exports increased by 10.7 percent compared to the previous year, with industrial production also seeing a 10.8 percent rise in September. In the first nine months of this year, foreign investment inflows increased by 8.9 per cent compared to last year, reaching US$17.3 billion.

Northern Vietnam has been devastated by the effects of Typhoon Yagi a month ago, resulting in over 300 casualties, power disruptions, and a halt in industrial production. Officials calculated the cost of property damage to be $3.3 billion.

S&P Global reported a significant drop in Vietnam's manufacturing PMI from August's 52.4 to 47.3 in September, marking the largest decline in sector health since November last year.