Positive economic data in January for key sectors in Vietnam

HO CHI MINH CITY - Vietnam's economy had a good start to the new year as positive data continued to show up in key sectors. Manufacturing continued to expand, though at a slower pace, with the January PMI reading at 51.9 (compared to 53.8 in December). It marked the 38th successive month of expansion.

Growth of both output and new orders stayed steady amid rising client demand. The retail sector saw robust sales of goods and services thanks to higher demand in the month prior to Lunar New Year. Real retail sales jumped 9.4% YoY in January (versus 7.7% YoY in January 2018).

Tourism continued to prove itself an important economic growth driver, with Vietnam attracting around 1.5 million international tourist arrivals during the month.

Vietnam also witnessed increasing foreign investment as pledged FDI reached USD1.9 billion, up 51.9% YoY, while disbursed FDI amounted to USD1.55 billion, up 9.2% YoY in January.

On the trade front, a slowdown in exports (USD20 billion, -1.1% YoY), and an increase in imports (USD20.8 billion, +3.8% YoY) caused a trade deficit of USD800 million. 

 Meanwhile, the Government's strong push toward SOE reform and equitisation as well as State capital divestment is expected to provide more investment opportunities to investors this year.  www.vietnamam.com (ATI).