Vietnam’s industrial production index down 18% in February

Vietnam’s index of industrial production (IIP) fell 6.8% year-on-year in February and 18% from a month earlier, the General Statistics Office (GSO) reported Thursday.

The one-week Lunar New Year (Tet) holiday, which fell totally in February, was a main factor in the month-on-month fall, it said.

Despite February’s fall, the January-February IIP went up 5.7% year-on-year, compared to a decline of 2.9% in the same period of 2023.

The growth in the first two months of this year was driven by a 5.9% increase in the manufacturing-processing sector, 12.2% in electricity production-distribution, and 2.5% in water supply, sewage and waste treatment. Meanwhile, the mining sector recorded a decrease of 3.5%.

Some sub-sectors with strong performances were chemicals and chemical products with a growth of 25.3%, plastics and plastic products with 24.3%, furniture with 23.4% and electrical appliances with 22.1%.

Sub-sectors with poor performance included machinery repair and installation, down 21.8%; exploitation of crude oil and natural gas, negative 9.4%; beverages, negative 6.6%; and electronics, computers, and optical products, negative 2.6%.

The Jan-Feb IIP rose in 56 localities and dropped in seven others. The highest rises were 63.2% in the southern province of Tra Vinh, 28.7% in the northern province of Bac Giang, and 26.9% in the northern province of Phu Tho.

The sharpest declines were seen in northern provinces, with 25.3% in Son La, 15.3% in Bac Ninh, and 7.5% in Hoa Binh.