Vietnam Jan-Aug industrial production up 8.6%; mobile phone, beer outputs fall

Vietnam’s January-August index of industrial production (IIP) grew 8.6% year-on-year, extending the recovery of the sector.

The growth was driven by the manufacturing sector (up 9.7%), electricity production and distribution (up 11.6%), and water supply and waste-wastewater treatment (up 7.8%), the General Statistics Office (GSO) reported Friday.

Only the mining sector fell in the eight-month period, by 6%.

The 8.6-percentage-point growth is an improvement from a fall of 0.2% in the same period of 2023, the GSO highlighted.

In manufacturing, the sub-sector of electronics, computers, and optical products recorded a growth rate of 9.8% in January-August, above the industry sector average.

Other sub-sectors with strong performances were plastics and plastic products with 29.5%, furniture with 21.6%, chemicals and chemicals products with 17.8%, and textile with 13.4%.

Some key sub-sectors with below-average performances were beverage with 0.5%, crude oil and natural gas exploitation with negative 11.2%, coal exploitation with negative 3.3%.

Some products reporting contraction in output were beer with 2.91 billion liters, down 3.7%; and mobile phones with 123.6 million devices, down 5.2%.

Two localities recorded worse year-on-year performances in January-August, namely the central province of Quang Ngai with negative 3.2% growth and the Central Highlands province of Gia Lai with negative 1.6%.

According to S&P Global, manufacturing activity in Vietnam continued to expand in August, extending its improving streak for a fifth month in a row, but at a slower pace, with further expansions in output and new orders.

Vietnam’s Manufacturing Purchasing Managers' Index (PMI) posted 52.4 in August, down from 54.7 in July but still signaling a solid monthly improvement in business conditions midway through the third quarter, it said.