Vietnam’s index of industrial production (IIP) went up 18.3% year-on-year in January but fell 4.4% month-on-month, the General Statistics Office (GSO) reported Monday.
The GSO attributed the strong year-on-year growth to the fact that this year’s Lunar New Year (Tet) holiday falls in February completely, while the previous one (2023) had seven days in January.
Meanwhile, the month-on-month decrease was due to underperformance by some key industrial hubs like Bac Ninh province (down 14.7%), Hai Phong city (down 13.8%), Ho Chi Minh City (down 4.5%), Hanoi (down 3.7%), and Binh Duong province (down 0.7%).
The January performance was driven by a 19.3% year-on-year growth of the manufacturing-processing sector, 21.6% growth of electricity production and distribution, 7.3% growth in mining, and 5.7% growth in water supply, sewage and waste treatment.
Some sub-sectors with strong increase in growth were furniture production with 66.7%, textiles with 46.2%, electrical appliance with 43.3%, metal production with 39.4%, paper and paper products with 38.7%, and leather and leather products with 34.7%.
January's strongest performance was by the southern province of Tra Vinh with an 86.6% year-on-year growth; followed by the northern provinces of Quang Ninh, Bac Giang, and Nam Dinh with 69.2%, 57.6%, and 55.3%, respectively.
Underperformers were the Mekong Delta province of Ca Mau, down 7.8% year-on-year; and the northern provinces of Bac Ninh and Son La, down 12.3% and 13.9%, respectively.
Vietnam’s IIP rose 5.8% year-on-year in December 2023, while the January-December, 2023 index inched up 1.5%.
The GSO attributed the year’s underperformance to many challenges resulting from falling global demand.