Vietnam's Manufacturing Industry Continues To Decline

Overlooking the buildings of Hanoi, the capital of Vietnam. On July 3, Standard & Poor's announced that the Vietnam Manufacturing Purchasing Manager Index (PMI) in June 2023 was 46.2, which was below the critical point for four consecutive months, indicating that the prosperity of Vietnam's manufacturing industry continued to deteriorate, mainly affected by factors such as the reduction of international orders and the power shortage caused by high temperatures. According to the data of the Vietnam Bureau of Statistics, GDP in the first half of 2023 increased by 3.72% year-on-year, which is lower than market expectations, and it is not expected to achieve the economic growth target of 6.5% in 2023. Affected by adverse factors such as financing difficulties and the fight against corruption, data from the National Real Estate Association of Vietnam showed that more than 1,200 real estate projects in Vietnam were suspended from January to May 2023, with a total price of 800 trillion VND (about 33.7 billion US dollars), and 550 real estate companies went bankrupt.

Photographer: Luong Thai Linh