Export recovery gains momentum

By Dat Nguyen   February 21, 2024 | 06:33 pm PT
Export recovery gains momentum
Containers seen at Tan Vu Port in Hai Phong City. Photo by VnExpress/Giang Huy
Vietnam’s exports are showing signs of recovery, driven by computer, electronics and smartphones, according to investment fund VinaCapital.

Exports in January surged 42% year-on-year to $33.6 billion, a turnaround from a decline last year, the first drop since the 2008-09 global financial crisis.

"January export growth was impressive, even when considering the timing of the Tet holiday and last year’s drop in Vietnam’s exports," said VinaCapital’s chief economist Michael Kokalari.

Computer and electronics jumped 60% as late last year there was a rise in global demand for more powerful computers capable of AI applications.

Smartphones went up 16% driven by the introduction of Samsung’s new S24 smartphone last month.

Manufacturing output grew by 19.3%, which means that factories will need to increase in activity to catch up with rising demand for "made in Vietnam" products.

As employment in the manufacturing sector has now fully recovered from last year’s layoffs, consumption will likely rise by additional factory hiring in the months ahead.

VinaCapital expects Vietnam’s export recovery to continue gaining momentum in the months ahead thanks to the recovery of the U.S. economy, which has now recorded the highest consumer confidence since reopening after Covid-19.

The fund also anticipated that domestic investors would pour more money into the stock market this year as bank deposit rates are now near all-time lows and market valuations are cheap.

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