Vietnam’s economy growing well despite Samsung’s production changes
VietNamNet Bridge - Any changes to be made by Samsung are expected to have an impact on Vietnam because of its high contribution to the country’s export and GDP growth. 


vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, Samsung, GDP, export turnover

Any changes to be made by Samsung are expected to have impacts on Vietnam




Official reports released by the General Statistics Office (GSO) showed a high GDP growth rate in the third quarter of year, 6.9 percent in comparison with the same period last year, higher than the 6.7 percent in Q2. This was beyond expectation.

The concern about gradual GDP growth was lifted after the Q3 statistics were released. Prior to that, economists warned that Vietnam’s GDP growth would slow down as a result of a shock in the manufacturing industry.

The decline in Samsung’s mobile phone output in the second quarter led to cautious forecasts about GDP growth rate in the third quarter. The manufacturer from South Korea makes up 20 percent of Vietnam’s total exports on average.

The mobile phone manufacturing and electronics industry is an important part of the processing & manufacturing sector which makes up 18.8 percent of Vietnam’s GDP and has a regular annual growth rate of over 10 percent.

The mobile phone manufacturing and electronics industry is an important part of the processing & manufacturing sector which makes up 18.8 percent of Vietnam’s GDP and has a regular annual growth rate of over 10 percent.

A report from SSI Research pointed out that the strong growth of industrial production and construction (8.61 percent) and reasonable policies all helped the manufacturing industry maintain its growth. The growth of the sector in Q3 did not decrease as seen in the second quarter.

The difficult period with Galaxy Note 7 in late 2016 was followed by the great success of Galaxy S8 and Note 8 in the second half of 2017. 

However, even when Galaxy S9, a flagship of Samsung, hit the market, the mobile phone production still declined in 2018 because of Samsung’s changes in its production plan.

In such difficult circumstances, reasonable policies and luck both helped prevent the manufacturing sector from declining sharply. 

In the auto industry, regulations that protect the domestic automobile manufacturing have brought positive effects. The motor vehicle manufacturing sector gained a 21-month high growth rate of 16.3 percent. 

Similarly, the pharmacy industry grew by 25.9 percent, the highest level in many years.

In addition, The US - China trade tension and the Chinese policy on scaling down polluting industries (such as steel) and labor-intensive industries (textiles & garments) helped Vietnam’s garment exports in the first nine months of the year to increase by 17.1 percent, the highest level since 2015, and steel exports to rise by 51.5 percent.


RELATED NEWS

Galaxy Note 9, S10 imitation products available in HCMC

Samsung aims to increase VN vendors to 50 by 2020


Thanh Lich

vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, Samsung, GDP, export turnover
 
*
*
*
  Send