Vietnam’s Processing and Manufacturing Industry Remains the Main Driver of Industrial Production in the First Seven Months of 2024
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The Industrial Production Index (IPI) for July 2024 is estimated to have increased by 0.7% compared to the previous month and 11.2% compared to the same period last year. Among these, the processing and manufacturing industry increased by 13.3% year-on-year; electricity production and distribution increased by 9.9%; water supply, waste management, and treatment activities increased by 12.1%. Meanwhile, the mining industry decreased by 7.0%.
For the first seven months of 2024, the IPI is estimated to have increased by 8.5% over the same period last year (compared to a 0.8% decrease in the first seven months of 2023). During this period, the processing and manufacturing industry increased by 9.5% (compared to a 1.2% decrease in the first seven months of 2023), contributing 8.2 percentage points to the overall increase; electricity production and distribution increased by 12.4% (compared to a 1.4% increase in the first seven months of 2023), contributing 1.1 percentage points; water supply, waste management, and treatment activities increased by 7.2% (compared to a 5.2% increase in the first seven months of 2023), contributing 0.1 percentage points. Conversely, the mining industry decreased by 6.2% (compared to a 2.0% decrease in the first seven months of 2023), resulting in a decrease of 0.9 percentage points.
The IPI for key secondary industries in the first seven months of 2024 showed significant increases compared to the same period last year: Rubber and plastic product manufacturing increased by 28.7%; bed, cabinet, table, and chair manufacturing increased by 21.5%; chemical and chemical product manufacturing increased by 17.3%; metal ore mining increased by 15.0%; casting metal product manufacturing (excluding machinery and equipment) increased by 13.0%; metal production increased by 12.8%; electrical equipment manufacturing increased by 12.5%; textile manufacturing, electricity, gas, hot water, steam, and air conditioning production and distribution all increased by 12.4%; electronic product, computer, and optical product manufacturing increased by 11.1%; food product manufacturing increased by 7.4%.
On the other hand, the IPI for some industries showed decreases: Crude oil and natural gas extraction decreased by 12.4%; repair, maintenance, and installation of machinery and equipment decreased by 2.9%; non-metallic mineral product manufacturing decreased by 1.8%; hard coal and brown coal mining decreased by 1.3%.
The industrial production index for the first seven months of 2024 increased in 60 localities and decreased in 03 localities nationwide compared to the same period last year. In some localities, the IPI achieved high growth rates due to increases in the processing and manufacturing industry and electricity production and distribution. Conversely, in some localities, the IPI decreased due to lower growth or decreases in the processing and manufacturing industry, mining industry, or electricity production and distribution.
Growth Rates of IPI for the First Seven Months of 2024 Compared to the Same Period Last Year in Selected Localities
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Some key industrial products in the first seven months of 2024 showed significant increases compared to the same period last year: Steel bars and angles increased by 31.4%; rolled steel increased by 17.8%; fabric made from natural fibers increased by 17.0%; NPK compound fertilizer increased by 14.2%; powdered milk increased by 12.3%; sugar increased by 12.0%; telephone components increased by 11.7%. Conversely, some products decreased compared to the same period last year: Natural gas in gaseous state and liquefied petroleum gas (LPG) both decreased by 16.9%; crude oil extraction decreased by 7.1%; beer decreased by 3.8%; mobile phones decreased by 3.2%; alumina decreased by 3.1%; iron and crude steel decreased by 1.6%.
The number of employees in industrial enterprises as of July 1, 2024, increased by 0.9% compared to the previous month and 3.3% compared to the same period last year. Among these, the number of employees in state-owned enterprises increased by 0.1% and 1.5%; non-state-owned enterprises increased by 0.5% and 0.7%; and foreign-invested enterprises increased by 1.2% and 4.3%.
By industry, the number of employees in mining enterprises increased by 0.1% compared to the previous month and 0.4% compared to the same period last year; the processing and manufacturing industry increased by 1.0% and 3.5%; electricity, gas, hot water, steam, and air conditioning production and distribution enterprises remained unchanged compared to the previous month and increased by 1.1% compared to the same period last year. Conversely, the number of employees in water supply, waste management, and treatment activities decreased by 0.1% compared to the previous month and increased by 1.2% compared to the same period last year.
Industrial production index in January 2024 rises by 18.3% compared to the same period last year
According to the statistics from the General Statistics Office, the industrial production index of January 2024 is estimated to have decreased by 4.4% compared to the previous month and increased by 18.3% compared to the same period last year, with the manufacturing industry increasing by 19.3%.
Positive signs maintained in Vietnam’s socio-economic situation in January 2024
Vietnam has entered the first month of 2024 with many challenges stemming from the global instability. However, with proactive and resolute leadership from the government, various sectors have immediately taken action and implemented numerous solutions to boost the economy. As a result, the Vietnamese economy has achieved significant positive outcomes in January.
Processing and Manufacturing Industry: The Key Drive for Export Success
In January 2024, the export of processed and manufactured industrial goods continues to hold the leading position in the country’s total export turnover.
