Industrial production posts strong growth in first two months

Industrial production posts strong growth in first two months

According to the National Statistics Office (NSO) under the Ministry of Finance, the index of industrial production (IIP) in February was estimated to decrease 18.4 per cent from the previous month but increase 1% year on year. Overall, in the January–February period, the IIP rose 10.4 per cent compared with the same period last year.

Industrial production surges in the first two months of 2026. — VNA/VNS Photo

Việt Nam’s industrial production maintained strong growth in the first two months of 2026 despite fewer working days due to the Lunar New Year (Tết) holiday, with the processing and manufacturing sector continuing to serve as the key growth driver.

According to the National Statistics Office (NSO) under the Ministry of Finance, the index of industrial production (IIP) in February was estimated to decrease 18.4 per cent from the previous month but increase 1 per cent year on year. Overall, in the January–February period, the IIP rose 10.4 per cent compared with the same period last year.

In February, production in the processing and manufacturing sector grew 2.3 per cent year on year. Meanwhile, mining declined 5.3 per cent, water supply and waste management fell 5.6 per cent, and electricity production and distribution dropped 4.5 per cent.

For the first two months of 2026, the processing and manufacturing sector expanded 11.5 per cent, contributing 8.9 percentage points to the overall IIP growth. Electricity production and distribution increased 6.3 per cent, contributing 0.6 percentage points, while water supply and waste management rose 2.1 per cent. Mining grew 5.4 per cent, reversing a decline recorded in the same period last year.

Several key industrial sub-sectors recorded strong growth compared with the same period last year. Production of other non-metallic mineral products increased 33.1 per cent, metal production rose 27.9 per cent, beverages grew 20.9 per cent, paper and paper products expanded 20.4 per cent, motor vehicles increased 20.3 per cent, chemical products rose 20.1 per cent, and wood processing grew 13.4 per cent.

In contrast, some sectors recorded declines, including the mining of hard coal and lignite, down 3.4 per cent, and the production of other transport equipment, which fell 2.7 per cent.

Industrial production expanded in all 34 provinces and centrally-run cities nationwide during the January–February period, largely driven by growth in processing and manufacturing as well as electricity production and distribution.

A number of major industrial products posted significant increases year on year, including cement, up 30.5 per cent; chemical paint, 27.5 per cent; steel bars and angle steel, 25.7 per cent; processed seafood, 24.8 per cent; automobiles, 24 per cent; motorbikes, 22.5 per cent; beer, 18.1 per cent; and phone components, 15.4 per cent. Meanwhile, urea fertiliser output declined 16.7 per cent and clean coal production fell 6.1 per cent.

Regarding industrial employment, the number of workers in industrial enterprises as of February 1 increased 0.2 per cent compared with the previous month and 4 per cent year on year. The employment in foreign-invested enterprises rose 5.9 per cent year on year, while State-owned enterprises saw a 3 per cent decline.

According to the NSO, localities should continue restructuring the industrial sector toward modernisation, improving productivity, product quality and value-added while enhancing competitiveness.

Priority should also be given to developing and mastering new technologies and emerging industries such as chips, semiconductors, artificial intelligence and green technologies, while strengthening supporting industries and linkages between foreign-invested and domestic enterprises.

Nguyễn Thị Hương, director of the NSO, said the industrial sector has shown clearer positive signs and a relatively solid recovery momentum. However, structural and market challenges remain, requiring coordinated solutions to sustain recovery and improve the quality of industrial growth in the coming period. 

Bizhub