Industrial production posts record growth in many years

Industrial production posts record growth in many years

For the January-July period, the IIP expanded to 11.4 per cent, marking the highest level recorded for the same period between 2019 and 2026, exceeding the 8.4 per cent growth in the first seven months of 2025, 8.5 per cent in 2024 and 9.4 per cent in 2019.

Production at Seoul Semiconductor Vina in Ninh Bình Province. Industrial production increased in all 34 provinces and cities in the first seven months of 2026, reflecting broad-based expansion nationwide. — VNA/VNS Photo Đại Nghĩa

The industrial production index (IIP) rose by 11.4 per cent from January to July, the strongest seven-month performance in nearly a decade, with growth recorded across all 34 provinces and cities driven by robust processing and manufacturing, the National Statistics Office (NSO) said in an August 3 report.

The IIP in July was estimated to increase by 1.2 per cent from the previous month and 14.5 per cent year-on-year, showing continued momentum in production, the NSO said.

For the January-July period, the IIP expanded to 11.4 per cent, marking the highest level recorded for the same period between 2019 and 2026. 

The expansion was driven mainly by the processing and manufacturing sector, which continued to serve as the key growth engine amid the launch of new production capacity and stronger industrial activity.

Manufacturing and processing expanded by 12 per cent during the period, accelerating from 10.1 per cent in the same period last year and contributing 9.3 percentage points to overall industrial growth.

Mining output recovered with a 6.6 per cent increase, compared with a 2.4 per cent decline a year earlier, contributing one percentage point.

Electricity generation and distribution rose by 9.9 per cent, contributing 0.9 percentage points, while water supply, waste management and treatment increased by 10 per cent, adding 0.2 percentage points.

Among secondary industrial sectors, metal production led growth in the first seven months with a 23.5 per cent increase, followed by motor vehicle manufacturing at 16 per cent and beverage production at 15.7 per cent. Production of non-metallic mineral products and other transport equipment both rose by 13.5 per cent.

Of note, industrial production increased in all 34 provinces and cities in the first seven months of 2026, reflecting broad-based expansion nationwide.

The central province of Hà Tĩnh posted the strongest growth, with its IIP rising by 36.8 per cent, followed by Ninh Bình with 27 per cent, Phú Thọ with 23.8 per cent, Nghệ An with 21.5 per cent and Thái Nguyên with 21 per cent.

Some localities still saw low growth, however. Lai Châu recorded the lowest growth at 3.4 per cent, followed by Sơn La at 3.8 per cent, Lào Cai at 5.7 per cent, Lạng Sơn at 6.9 per cent and Gia Lai at 8 per cent.

The gap reflected differences in industrial structures and the performance of major production facilities in each locality, the NSO said.

Several key industrial products recorded strong growth in the period: motorcycles are up 31.1 per cent, laptops up 30.7 per cent, rolled steel up 24.7 per cent, automobiles up 24.3 per cent, processed seafood up 21.2 per cent, refined sugar up 18.5 per cent, steel bars and angle bars up 16.8 per cent, beer up 13.9 per cent and crude oil up 12.7 per cent.

Products that saw declines include NPK fertiliser, down 10.9 per cent, monosodium glutamate, down 7.8 per cent, leather footwear, down 4.9 per cent and clean coal, down 3.1 per cent.

Alongside the increase in production, employment in industrial enterprises also improved.

The number of workers employed by industrial firms as of July 1 increased by 1 per cent from the previous month and 3.1 per cent over the same period last year. 

Bizhub