Industrial production index inches up 0.3% in November

Vietnam’s index of industrial production (IIP) rose 0.3% in November from October, a slow pace due to companies' lack of orders, high input costs and shortage of materials, according to the General Statistics Office.

The IIP rose 3% in October, 1.8% in September, and 2.9% in August against the previous month.

The industrial hubs of Bac Ninh in the north and Binh Duong in the south recorded IIP at negative 0.5% and negative 0.8%. The worst performance was the southern province of Vinh Long with negative 6.7%.

Top results belonged to Long An province in the south with 11%; Vinh Phuc, Quang Ninh, and Hai Phong in the north with 10.7%, 7.9%, and 6%, respectively.

The mining sector grew 5.1% in November, followed by the water supply, waste and wastewater treatment with 1.1%, and the manufacturing and processing sector with 0.1%. Electricity production and distribution was negative 2%.

In the first 11 months of the year, the IIP increased 8.6% year-on-year, driven by the processing and manufacturing sector with a growth of 8.9%, or 6.8 percentage points to the overall growth; the mining sector with 6.5% (one percentage point); and electricity production and distribution with 7.7% (0.7 percentage points).

The best performing sectors in the period were beverage with a year-on-year growth of 31%, medicine and pharmaceuticals with 18.8%, wood processing (18.4%), leather processing and leather products (16.7%).

Vietnam recorded 137,764 newly licensed firms and 56,935 businesses resuming operation in the 11-month period, up 30.4% and 40.5%, respectively.

The new firms had a total registered capital of VND1,484 trillion ($59.98 billion) and employed 908,970 people, up 2% and 15.9%, respectively.

The service sector attracted 102,082 new businesses with registered capital of VND1,046 trillion ($42.28 billion), followed by construction and industry (33,851 firms, VND397.46 trillion); and the agriculture, forestry, and fisheries (1,831 companies, VND40.4 trillion).

Meanwhile, 70,220 companies suspended activities and 16,848 others completed their dissolution, up 34.8% and 13.3% year-on-year, respectively, or 87,068 players leaving the market in January-November.

Vietnam’s consumer price index (CPI) in November rose 4.56% from December 2021 and 4.37% year-on-year, reflecting rising inflationary pressure, driven by hikes in gasoline prices and housing rent.

Higher gasoline prices contributed to the increase of 2.23% in the transportation sector, or 0.22 percentage points to the CPI. Education, restaurant service, and telecommunications sectors recorded negative figures of 0.63%, 0.07%, and 0.02%.

On average, the CPI in the first 11 months of the year increased by 3.02% over the same period last year. Meanwhile, core inflation, which reflects price changes without volatile commodities like food and energy, increased by 2.38%.

In November, the country’s total retail sales and service revenue reached VND514.1 trillion ($20.78 billion), up 17.5% year-on-year.

The January-November figures increased 20.5% year-on-year to VND5,181 trillion ($209.44 billion). In particular, tourism revenue nearly quadrupled to VND22.9 trillion ($925.81 million).