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The index of industrial production (IPP) rebounded by 11% in May compared to April but still remained about 3% lower than the level recorded in May 2019.

WB: Vietnam’s Industrial Production Bounced Back Sharply in May When Social Distancing Relaxed
Photo: GettyImages
In May, domestic manufacturing and retail sales rebounded by approximately 10% compared to their April-levels but remained lower than during the same period last year.
Foreign demand weakened as illustrated by the slight decrease in exports and in FDI inflows (y/y). At about 10% (y/y), the expansion of the credit to the economy was approximately three times faster than the GDP growth rate during the four first months of 2020, in line with the gradual easing of monetary conditions by the State Bank of Vietnam.
In April, the Government only collected about 65% of the revenue reported a year earlier as the result of slower economic growth and new tax relief measures. In early July, the authorities will release the critically important GDP figures for the second quarter.
Vietnam entered Day 45 without any new cases of COVID-19 community transmission.  As of May 31, 2020, 328 people have been infected with the virus (all new cases came from Vietnamese repatriated home from abroad) of which 279 cases have been discharged, corresponding to a recovery rate of 85 percent. No deaths have been recorded.
After suffering from the restrictive measures of the country during the month of April, the index of industrial production (IPP) rebounded by 11% in May compared to April but still remained about 3% lower than the level recorded in May 2019.
Retail sales also bounced back significantly in May.
Both passenger and cargo transportation activities rose by 116% and 32% between April and May as a result of the easing of domestic mobility restrictions that started on April 23. This recovery is corroborated by the Google mobility indicators that, on average, rose from minus 30% to only minus 5% in comparison to the pre-COVID benchmark between mid-April and the week of
Although the value of Vietnam’s merchandise exports increased by about 5% between April and May, it was 5.5% lower than a year ago due to weaker external demand and some possible disruptions of global supply chains. 
Vietnam key labor-intensive exports such as garment and footwear decreased by 14% and 5% (y/y) while technology exports, such as smart phone, declined by 9% (y/y). In May, imports fell by nearly 6% (y/y) reflecting lower oil prices and slowdown in demand for foreign inputs by domestic firms.
Foreign Direct Investment (FDI) continued to flow into Vietnam during May but at a slower pace than reported in April. In the first five months of 2020, the total value of committed FDI amounted to $13.9 billion – still significant but equivalent to a year-onyear decrease of 17%.

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