Industrial production holds firm in maintaining growth trend

Domestic industrial production has continued its uptrend, fuelled by a rise in processing and manufacturing activities, but challenges remain.

- By Thanh Thu

According to the National Statistics Office last week, Vietnam’s industrial production in the first quarter of this year “has kept its positive growth trend”.

The index for industrial production (IIP) in March is estimated to have risen nearly 19 per cent on-month and nearly 7 per cent on-year.

The first-quarter IIP is estimated to have climbed 9 per cent as compared to the same period last year - also the highest Q1 increase since 2020, in which the IIP ascended 9.7 per cent on-year for the processing and manufacturing industry; 7.8 per cent for the waste and wastewater management and treatment industry; 6.3 per cent for the electricity production and distribution industry; and 4.7 per cent for the mining industry.

Vietnam’s industrial production has been recovering both qualitatively and quantitatively, especially in the context that the global economic situation remains unpredictable. It has continued acting as a key driver of economic growth, according to the Ministry of Industry and Trade (MoIT).

According to the MoIT, key industries have continued to develop strongly, such as oil and gas; mineral exploitation and processing; electricity, telecoms, and IT; metallurgy, iron, and steel; cement and construction materials; garments, textiles, and footwear; mechanical processing and manufacturing; and vehicles.

In the first three months of this year, production of many key products in the economy witnessed an on-year increases (see box). This has created an important foundation for long-term growth, as well as promoting the country’s industrialisation and modernisation.