Jan-Aug industrial output to rise 17 pct y/y

Vietnam's January-to-August industrial output is expected to rise 17.1 percent from a year earlier to 377.07 trillion dong ($23.3 billion), but crude oil production has slowed, the government said on Tuesday.

The industrial sector, making up a third of Vietnam's economy, helped lift gross domestic product by 7.87 percent in the first half of the year from the same period a year earlier.

But crude oil production during the first eight months is expected to fall 8 percent from the same period last year to 10.38 million tonnes, or 313,100 barrels per day, the government's General Statistics Office said in a monthly report.

Crude's decline "does not only affect greatly the export growth and state budget income but also has an impact on the industrial sector's contribution to the eight-month gross domestic product growth", it said, without giving details.

Crude exports, Vietnam's top foreign exchange earner, in January-to-August fell 11.8 percent from a year earlier to $5.1 billion, the statistics office said.

However, production of cars, machinery and air-conditioners in the eight-month period extended the strong growth since the start of the year, rising by between 60 percent and 70.2 percent from a year earlier.

The state sector was estimated to grow 10.2 percent during the first eight months, up from 9.7 percent in the January-to-July period.

Production by enterprises outside state control was also expected to expand slightly faster in the January-to-August period, growing 20.5 percent from a year earlier, up 0.1 percentage point compared with January-to-July.

Growth in the foreign investment sector slowed to 18.6 percent, from 18.9 percent during the first seven months.

Industry accounts for 34.9 percent of gross domestic product, ranking after the service sector which contributed 38.8 percent to Vietnam's GDP during the first half, the government said.

Vietnam aims for GDP growth of 9 percent in the second half of this year, which will help it meet its annual growth target of 8.5 percent.

Source: Reuters