Industrial Production Surges in H1 2025: Up 9.2%, the Highest Since 2020

According to data released by the General Statistics Office (Ministry of Finance) on the morning of July 5, 2025, the industrial production index (IIP) in the second quarter of 2025 is estimated to increase by 10.3% over the same period last year, of which the processing and manufacturing industry increased by 12.3%.

In the first six months of 2025, the IIP is estimated to increase by 9.2% over the same period last year (in the first six months of 2024, it increased by 8.0%). In particular, the processing and manufacturing industry increased by 11.1% (in the first six months of 2024, it increased by 8.9%), contributing 9.1 percentage points to the overall growth; electricity production and distribution increased by 4.5% (up 12.8% in the same period last year), contributing 0.4 percentage points; water supply, waste management, and treatment activities increased by 11.3% (up 6.4% in the same period last year), contributing 0.2 percentage points; mining decreased by 3.0% (down 6.0% in the same period last year), resulting in a decrease of 0.5 percentage points.

According to the report of the General Statistics Office, in the first six months of 2025, the production index of a number of key secondary industries increased over the same period last year, including: motor vehicle production increased by 31.5%; leather and related product manufacturing increased by 17.1%; rubber and plastic product manufacturing increased by 17.0%; garment manufacturing increased by 15.1%; other transportation equipment manufacturing increased by 14.1%; other non-metallic mineral product manufacturing increased by 13.7%; fabricated metal product manufacturing (excluding machinery and equipment) increased by 11.8%; furniture manufacturing increased by 11.7%; metal production increased by 11.0%; food processing increased by 10.8%; and electronic product, computer, and optical product manufacturing increased by 9.8%.

On the other hand, some industries recorded low growth or decline in the IIP: beverage production increased by 1.9%; electrical equipment manufacturing increased by 1.1%; crude oil and natural gas extraction decreased by 8.2%.

Regarding the industrial production index in the first six months of 2025 compared to the same period last year, the report of the General Statistics Office recorded an increase in 62 provinces and cities, with Ba Ria-Vung Tau province decreasing by 2.6%. Some localities recorded high IIP growth rates due to increases in the processing and manufacturing industry, as well as electricity production and distribution.

On the contrary, some localities recorded low growth or decline in the IIP due to low growth or decline in the processing and manufacturing industry, mining industry, and electricity production and distribution.

In the first six months of 2025, some key industrial products recorded an increase in output compared to the same period last year, including: automobiles increased by 70.2%; televisions increased by 21.9%; NPK compound fertilizers increased by 18.9%; liquefied petroleum gas (LPG) increased by 16.9%; ready-to-wear garments increased by 14.9%; cement increased by 14.8%; leather shoes and sandals increased by 14.3%; steel bars and angles increased by 13.9%; and refined sugar increased by 12.8%.

On the other hand, some products recorded a decrease compared to the same period last year, including natural gas in gas form, which decreased by 12.3%; synthetic fiber fabrics decreased by 4.9%; and crude oil decreased by 3.9%.

Regarding the consumption index of the processing and manufacturing industry in June 2025, the report showed an increase of 0.6% compared to the previous month and an increase of 10.1% over the same period last year. In the first six months of 2025, the consumption index of the processing and manufacturing industry increased by 9.8% over the same period in 2024 (up 10.8% in the same period last year)

The inventory index of the processing and manufacturing industry was estimated to increase by 6.7% at the end of June 2025 compared to the previous month and by 12.0% over the same period last year (up 9.6% in the same period last year). The average inventory rate of the processing and manufacturing industry in the first six months of 2025 was 85.7% (compared to 76.9% in the same period last year)

Regarding the number of employees in industrial enterprises, the report recorded a 1.2% increase at the beginning of June 2025 compared to the previous month and a 4.7% increase over the same period last year. Specifically, the number of employees in state-owned enterprises increased by 0.2% and decreased by 0.1%; non-state enterprises increased by 0.7% and 3.1%; and foreign-invested enterprises increased by 1.6% and 5.8%, respectively.

By industry, the number of employees in mining enterprises increased by 0.5% compared to the previous month and decreased by 0.3% over the same period last year; in processing and manufacturing enterprises, the numbers increased by 1.3% and 5.1%, respectively; in electricity production and distribution enterprises, and in gas, hot water, steam, and air conditioning enterprises, the numbers increased by 0.1%; and in water supply, waste management, and treatment enterprises, the numbers increased by 0.3% and 1.5%, respectively.

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