Industrial production shows continued upward trend

Industrial production shows continued upward trend

Phú Thọ topped the nation again with 46.7 per cent IIP increase year-on-year.

An automation production system at a Viglacera Corp JSC factory in Bà Rịa - Vũng Tàu Province. — VNA/VNS Photo

Việt Nam’s industrial production index (IIP) maintained strong growth momentum, rising 8.8 per cent year-on-year in the first five months of 2025, compared to a 7.1 per cent increase during the same period last year, according to data from the Ministry of Finance's General Statistics Office (GSO).

The manufacturing and processing sector - the main driver of overall industrial growth - expanded by 10.8 per cent, contributing 8.8 percentage points to the industrial production index (IIP).

Electricity production and distribution rose by 4.2 per cent, adding 0.4 percentage points, while the water supply, waste, and wastewater management sector grew by 10 per cent, contributing 0.2 percentage point. In contrast, the mining sector declined by 3.4 per cent, dragging the IIP down by 0.6 percentage points. 

The IIP for some industries showed notable year-on-year growth, with motor vehicle production surging by 34 per cent; leather and leather-made products (17 per cent); rubber and plastic products (16.1 per cent); garment (16 per cent); furniture manufacturing (13 per cent); production ofcoke and refined petroleum products (12 per cent); and electronic products, computers, and optical products (10 per cent). 

Conversely, other industries experienced a decline in IIP in the first five months such as crude oil and natural gas exploitation (9 per cent); pharmaceutical, chemical, and medicinal material production (6 per cent), and electrical equipment manufacturing (4 per cent). 

According to the GSO, production of key industrial products saw significant growth in the first five months of 2025 compared to the same period last year. Automobiles led the surge with a 70 per cent increase, followed by televisions at 26 per cent; NPK mixed fertiliser (20 per cent); clothing (15 per cent); rolled steel (14 per cent), and cement (13 per cent).

An automation production system at a Viglacera Corp JSC factory in Bà Rịa - Vũng Tàu Province. — VNA/VNS Photo

The office added that several localities reported significant IIP growth in the period, driven by strong performance in manufacturing, processing, and electricity production sectors. Phú Thọ topped the nation again with 46.7 per cent IIP increase year-on-year. It was followed by Nam Định (30 per cent); Bắc Giang (28 per cent); Bắc Kạn (24 per cent) and Hà Nam (23 per cent). 

To drive industrial development and help achieve the national economic growth target of at least 8 per cent this year, the Ministry of Industry and Trade (MoIT) said it will prioritise the effective implementation of tasks outlined in Government Resolutions No 01 and 02, as well as Resolution No 25 dated February 5, 2025. These resolutions set growth targets for industries, sectors, and localities across the country.

At the same time, the MoIT is actively working with other ministries and agencies to implement measures that encourage businesses to expand investment and attract large multinational corporations to key projects in the country.

Amid growing challenges in export markets - due to stricter standards and high tariffs imposed by many countries to protect their domestic industries - experts recommend that processing and manufacturing enterprises, especially in mechanical engineering and supporting industries, shift their focus toward the domestic market.

Additionlly, the ministry said it is fast-tracking programmes to support industrial enterprises in their digital transformation efforts. It is also preparing a programme for submission to the Government, which isaimed at helping businesses adopt Industry 4.0 technologies and develop smart production.

It is also focusing on policies that encourage investment in smart factories, automated production, and the use of Internet of Things (IoT), artificial intelligence (AI), and big data to boost efficiency. 

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