Industrial production climbs in slow recovery

Bumpy road: A shopkeeper checking his phone in Hanoi. A new PMI reading signals a renewed reduction in orders during November. — AFP

HANOI: Vietnam’s index of industrial production (IIP) went up 1% in the first 11 months of 2023 with the November IIP alone rising 5.8% year-on-year (y-o-y), according to the General Statistics Office (GSO).

The GSO said enterprises have made efforts to find orders to complete the year’s production and business plans and prepare goods to meet consumption demand at the end of the year so industrial production in November continued a positive trend.

Over the 11 months so far this year, the manufacturing and processing sector rose 1.1%, electricity generation and distribution 3.2%, and water supply and sewerage and waste management 4.9% compared to the same period last year.

The mining sector, meanwhile, was down 2.8% y-o-y.

Key industrial sectors registering increases in IIP during the period include rubber and plastic products, up 11.8%, metal ore mining 11%, tobacco 10.5%, chemicals and chemical products 8.6%, and food production and processing 6.2%.

Some major goods also saw positive IIP growth such as sugar production, which rose 35%, mixed fertiliser 14.2%, dairy products 8.4%; TVs 7% and chemical paints 6%.

Meanwhile, the IIP of some manufacturing industries decreased such as other means of transport at minus 9%, motor vehicles minus 3.6%, crude oil and natural gas exploitation minus 4.2%, other non-metallic minerals minus 3.9%, electronic product manufacturing, computers, and optical products minus 1.3%.

According to the GSO, 50 cities and provinces posted y-o-y growth in their IIP during the period, while 13 saw declines.

Some localities have seen a fairly high increase in the IIP due to a sharp increase in the processing and manufacturing industry, electricity production, and distribution industry including Dak Lak at 33.6%, Bac Giang 20.5%, Phu Tho 17.6%, Nam Dinh 15.5%, and Hai Phong 13.5 %.

The number of workers in industrial enterprises as of Nov 1, 2023, increased by 1% compared to the same time last month and decreased by 0.2% compared to the same time last year.

Particularly, the number of workers in the state-owned sector and the non-state-owned sector decreased by 1.4% and 2% y-o-y, respectively. The number of workers in the foreign-invested sector surged by 1% compared to last year’s corresponding period.

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index dropped to a five-month low of 47.3 in November from 49.6 in October. The index signalled a solid monthly deterioration of business conditions in the sector, extending the current sequence of declines to three months in the process.

S&P Global said manufacturers faced a renewed reduction in new orders during November, thereby ending a three-month sequence of growth. — Viet Nam News/ANN

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Vietnam , PMI , industrial production


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