Industrial production maintains rapid and throughout bounce back

Production activities of FDI enterprises

According to the assessment of the Ministry of Industry and Trade, since early months of the year, industrial production has witnesses rapid and wide vitality, which is the driving force for growth.

In November alone, businesses prepared goods to meet year-end consumer demand, so industrial production has maintained positive upward trend, as shown by the November purchasing managers' index (PMI) continuing to record growth, reaching a threshold above 50 points (50.8 points).

This figure shows that industrial production continued to recover after the severe impact of storm No. 3. Output and new orders maintained the usual year-end growth momentum.

Specifically, the industrial production index (IIP) in November 2024 was estimated to increase by 2.3% compared to the previous month and by 8.9% year on year.

In particular, compared to the same period last year, the processing and manufacturing industry increased by 11.2%; the electricity production and distribution industry increased by 5.5%; the water supply, waste and wastewater management and treatment industry increased by 6.7%; the mining industry alone decreased by 9.8%.

In general, in the 11 months of 2024, industrial production maintained its significant bounce back (increased in 60/63 localities), which was the driving force for growth when IIP was estimated to increase by 8.4% over the same period last year (an increase by 0.9% year on year), the highest increase in the period from 2020 to present.

Of which, the processing and manufacturing industry increased by 9.7% (an increase by 1.0% year on year), contributing 8.5 percentage points to the overall growth rate; the electricity production and distribution industry increased by 10.2%, contributing 0.9 percentage points; the water supply, waste and wastewater management and treatment industry increased by 9.6%, contributing 0.2 percentage points; the mining industry decreased by 7.3%, reducing the overall growth rate by 1.2 percentage points.

The industrial production index in the first 11 months of 2024 of some key secondary industries soared. In detail, production of rubber and plastic products increased by 25.6%; production of beds, cabinets, tables, and chairs increased by 24.7%; production of motor vehicles increased by 18.3%; production of coke and refined petroleum products increased by 14.5%; Production of chemicals and chemical products increased by 13.4%; production of leather and related products increased by 12.6%; textiles increased by 12.1%; production of prefabricated metal products (except machinery and equipment) increased by 11.9%; production of electronic products, computers and optical products increased by 8.7%; food processing increased by 7.7%.

On the contrary, the IIP index of some industries only recorded slight growth or even a drop such as: Crude oil and natural gas exploitation decreased by 12.2%; hard coal and lignite mining decreased by 5.3%; production of other non-metallic mineral products increased by 0.6%; beverage production increased by 0.8%; production of other means of transport increased by 2.7%.

The industrial production index in the first 11 months of 2024 compared to the same period last year recorded an upturn in 60 localities and a reduction in 3 localities nationwide. Some localities had a fairly high IIP index due to the leap in the processing and manufacturing industry; electricity production and distribution industry, and mining industry.

On the contrary, some localities have recorded a decline in IIP index due to a decrease in processing and manufacturing industry and electricity production and distribution industry.

Some key industrial products in the 11 months of 2024 recorded an upward trend year on year such as: automobiles by 22.4%; steel bars and angle steel by 21.7%; natural fiber woven fabrics by 16.0%; gasoline by 15.9%; diameter by 14.8%; rolled steel by 14.1%; NPK mixed fertilizer by 11.9%; powdered milk by 11.5%; processed seafood by 11.0%; electricity production by 10.0%; urea by 9.0%.

Meanwhile, some products witnessed downtrend performance year on year such as: Gaseous natural gas by 17.8%; LPG liquefied gas by 14.0%; crude oil by 6.0%; coal (clean coal) by 5.3%; mobile phones by 4.2%; beer by 2.1%; Aluminum by 1.2%.