Vietnam industrial sector sees 1.5% annual growth, 5.8% Dec growth

Vietnam’s industrial sector continued its recovery with the index of industrial production (IIP) rising 5.8% year-on-year in December, while the January-December index inched up 1.5%.

The General Statistics Office (GSO) has attributed the year’s underperformance to many challenges resulting from falling global demand.

The 12-month performance was driven by a 1.6% growth in the manufacturing-processing sector; 3.5% in production and distribution of electricity, gas, hot water and air conditioning; and 5.8% in water supply and waste-wastewater treatment. However, the mining sector dropped 3.9%.

The sub-sectors with the best growth in 2023 were plastics and plastic products at 11.8%, mining of metals at 13.2%, tobacco at 10.1%, chemicals and chemical products at 9.5%, and metal mining at 9.5%.

The poor performers were electronics, computers and optical products with negative 0.6%; wood processing and wooden products (-1.5%); manufacturing of vehicles with engines (-2.4%); manufacturing of other vehicles (-10.7%), and crude oil and natural gas exploitation (-5.7%).

Locality-wise, the best performer in 2023 was the southern province of Tra Vinh (29.1%), followed by the northern provinces of Bac Giang (20.3%), Phu Tho (18.3%), Nam Dinh (14.6%), Quang Ninh (14%); and the central province of Khanh Hoa (13.7%). Overall, 50 out of 63 cities and provinces recorded better performances than last year.

The worst performers were the central province of Quang Nam (-25.2%), the northern provinces of Lai Chau (-19.8%), Son La (-19.6%), Ha Giang (-17.2%) and Bac Ninh (-11.2%). Thirteen localities recorded worse year-on-year performances, according to the GSO.