Economics

Vietnam's Economy Takes Knock as Samsung Production Drops

  • Economy expanded 5.1% y/y in first quarter, estimate was 6.25%
  • Industrial output rose 3.85%, smallest growth since 2011
Photographer: Jeff Holt/Bloomberg
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Vietnam’s economy grew at a slower pace than economists estimated in the first quarter as industrial output eased and Samsung Electronics Co. cut production of smartphones.

Vietnam outperformed most of its Southeast Asian peers last year as export growthBloomberg Terminal remained resilient. The economy has become a manufacturing hub for companies such as Samsung, which is Vietnam’s biggest exporter, accounting for about 20 percent of the nation’s shipments. Samsung took the dramatic step in October to end production of its Galaxy Note 7 smartphone, a decision that businesses said at the time would hurt the economy.