H1 industrial production hits seven-year high

H1 industrial production hits seven-year high

The latest updates showed that the Index of Industrial Production (IIP) rose 10.8 per cent in the January–June period, accelerating from an 8.7 per cent increase in the same period of 2025 and marking the strongest first-half growth in seven years.

Production of cleaning equipment at Karcher Việt Nam in Đà Năng City. Manufacturing and processing remained the main driver of industrial growth in the first half of this year. — VNA/VNS Photo Trần Tĩnh

Industrial production expanded at its fastest pace since 2019 in the first half of 2026, driven by robust manufacturing activity and broad-based growth, the National Statistics Office (NSO) said at a press conference on Friday.

The latest updates showed that the Index of Industrial Production (IIP) rose 10.8 per cent in the January-June period, accelerating from an 8.7 per cent increase in the same period of 2025 and marking the strongest first-half growth in seven years.

In the second quarter alone, industrial production increased 11.2 per cent year-on-year.

Manufacturing and processing remained the main driver of industrial growth in the first half of this year, rising 11.4 per cent and contributing 8.9 percentage points to the overall IIP growth.

Electricity production and distribution climbed 9.6 per cent, contributing 0.9 percentage points, while mining recovered with growth of 5.8 per cent after contracting 3.5 per cent a year earlier. Water supply and waste management increased 8.9 per cent.

The NSO said industrial production increased in all 34 provinces cities during the first half, supported mainly by stronger manufacturing and electricity output.

Output of several key industrial products also recorded double-digit growth.

Motorcycle production surged 32.9 per cent from a year earlier, automobiles increased 26.9 per cent, rolled steel rose 23.3 per cent and processed seafood gained 21.6 per cent.

Other products with robust growth included sugar up 16.8 per cent, beer up 14.4 per cent, chemical paints up 14 per cent and crude oil production up 13.1 per cent.

Some products saw declines, including NPK fertiliser down 8.3 per cent, monosodium glutamate down 8.2 per cent, coal and leather footwear each down 5.7 per cent.

Inventories of the manufacturing and processing industry at the end of June were 13.3 per cent higher than a year earlier, although the average inventory ratio for the first six months declined to 82.2 per cent from 85.7 per cent a year earlier. 

Bizhub