Việt Nam’s Industrial Production Index Maintains Positive Growth
Hanoi, The Gulf Observer: Việt Nam’s Industrial Production Index (IIP) has continued its positive trajectory, with a significant increase of 3.9 percent over April and a robust 8.9 percent rise compared to the same period last year, according to the General Statistics Office (GSO).
The GSO reported that the IIP surged by 6.8 percent year-on-year in the first five months of 2024, a marked improvement from the 2 percent decline recorded during the same period in 2023.
The manufacturing and processing sector experienced a notable increase of 7.3 percent. Electricity production and distribution soared by 12.7 percent, while the water supply, waste, and wastewater management and treatment sector rose by 6.3 percent. In contrast, the mining sector saw a decline of 5.2 percent.
Significant gains were observed in specific sectors, with rubber and plastic production up by 27 percent and furniture manufacturing increasing by 24 percent. However, some sectors recorded declines: repair, maintenance, and installation of machinery and equipment fell by 12 percent; crude oil and natural gas exploitation decreased by 11 percent; and production of other means of transport dropped by 5 percent.
The GSO highlighted that the IIP increased in 55 localities and decreased in eight during the reviewed period. Notably, Phú Thọ recorded a 31 percent growth, Bắc Giang saw a 25 percent increase, Bình Phước grew by 15 percent, and both Hà Nam and Hải Phòng reported a 14 percent rise. Conversely, localities such as Hà Tĩnh, Quảng Ngãi, and Cà Mau experienced declines of 9 percent, 8.2 percent, and 2.5 percent, respectively.
The GSO also reported that the workforce in industrial enterprises as of May 1, 2024, grew by 1 percent month-on-month and 3.2 percent year-on-year.
Đào Phan Long, Chairman of the Vietnam Association of Mechanical Industry, emphasized that the ongoing efforts of developed countries to diversify supply sources, supply chains, and investments would bolster Vietnam’s position as a crucial production and export hub in the global value chain. However, he cautioned that the global economic outlook for 2024 indicated weak growth, high inflation, and geopolitical tensions, which could negatively impact Vietnam’s open economy and its involvement in numerous free trade agreements.
Long stressed the need for enhanced connectivity solutions from ministries and sectors and called for government support in addressing challenges related to capital, interest rates, and administrative procedures.
In response, the Ministry of Industry and Trade committed to accelerating public investment disbursement and resolving outstanding issues to expedite the operation of key projects in the electricity, oil and gas, manufacturing, processing, and mining industries, thereby fostering market capacity and business development.
