Việt Nam’s industrial production records strongest five-month growth in four years

Việt Nam’s industrial production records strongest five-month growth in four years

Việt Nam’s industrial production maintained strong momentum in the first five months of 2026, with the Index of Industrial Production (IIP) rising by 9.1 per cent year-on-year.

Workers at Toyota Boshoku Hanoi Co., Ltd in Phú Thọ province. VNA/VNS Photo

Việt Nam’s industrial production maintained strong momentum in the first five months of 2026, with the Index of Industrial Production (IIP) rising by 9.1 per cent year-on-year, the highest growth rate for the period in the past four years, according to the Ministry of Finance’s National Statistics Office (NSO).

The office reported that the IIP expanded across all 34 provinces and cities during the period. Strong growth in manufacturing and processing, along with electricity production and distribution, drove industrial expansion in many localities, while some areas recorded slower growth due to weaker performance in manufacturing, mining and power generation.

​In May alone, the IIP was estimated to increase by 3.3 per cent from the previous month and 8.8 per cent year-on-year. Manufacturing and processing grew by 9 per cent compared to the same period last year, while water supply, waste and wastewater management activities rose by 8.7 per cent, electricity production and distribution increased by 8.5 per cent, and mining expanded by 6 per cent.

​Overall, in the January–May period, IIP growth of 9.1 per cent surpassed the 8.8 per cent increase recorded in the same period of 2025. Manufacturing and processing, the key driver of industrial growth, expanded by 9.5 per cent, contributing 7.4 percentage points to the overall increase. Mining rose by 5.5 per cent, reversing a decline in the corresponding period last year, while electricity production and distribution grew by 7.6 per cent.

​Several major industries posted robust growth, including metal production (20.2 per cent), motor vehicle manufacturing (18 per cent), chemicals and chemical products (16.9 per cent), other non-metallic mineral products (16.2 per cent), and beverages (15.1 per cent). In contrast, the production of hard coal and lignite mining declined by 4.6 per cent, while that of other transport equipment fell by 1 per cent.

Among key industrial products, motorcycle output surged by 36 per cent year-on-year, followed by automobiles (26.7 per cent), processed seafood products (21.6 per cent), rolled steel (21.5 per cent), and sugar and beer, both up 14.4 per cent. Meanwhile, production of NPK fertiliser fell by 6.8 per cent, MSG declined by 6 per cent, leather footwear dropped 5.7 per cent, and clean coal production decreased by 4.7 per cent.

The labour market also showed positive signs. As of May 1, the number of employees working in industrial enterprises increased by 1.1 per cent from a month earlier and 3.4 per cent year-on-year, the NSO said. Employment in foreign-invested enterprises rose by 1.5 per cent month-on-month and 3.4 per cent year-on-year, while non-State enterprises recorded corresponding increases of 0.6 per cent and 2.6 per cent.

​The broad-based growth of industrial production underscores the resilience of the sector and its role as a key driver of economic expansion, although continued efforts are needed to improve productivity, strengthen manufacturing and ensure sustainable growth. 

Bizhub