Vietnam’s industrial production index slips 0.4% in Jan-Aug

Vietnam’s index of industrial production (IIP) increased 2.9% month-on-month and 2.6% year-on-year in August, but the index fell 0.4% year-on-year in the first eight months of the year.

The General Statistics Office has attributed the weak Jan-Aug performance to global economic headwinds, with a 0.6% year-on-year decrease in the manufacturing-processing sector, compared to a 10.1% growth in the same period of 2022, which led to a 0.3 percentage points drop in the overall IIP. Besides, the mining sector dropped 2.5%, making the IIP go down 0.4 percentage points.

Two sectors with growth were electricity production-distribution and wastewater treatment-management, up 1.7%, and 4.8%, respectively.

Among sub-sectors, the highest growth of 9.9% belonged to production of coke and refined petroleum products, followed by tobacco production (8.6%), plastics and plastic products (8.4%), goods made from molded steel (excluding machines and equipment) (7%), and others.

The worst performances were vehicles with engines, negative 6.5%; production of other vehicles (- 6%), fashion products (- 5.1%); and paper and paper products (- 4.8%).

The IIP of 49 localities went up and that of the remaining 14 decreased. The southern province of Tra Vinh recorded the strongest growth of 25.5%, followed by northern provinces of Bac Giang with 15.9%, Phu Tho with 15.6%, Thai Binh with 14.3%, and Nam Dinh with 13.6%.

The localities with very weak performances included the northern mountainous province of Lai Chau with negative 33.6%, the central province of Quang Nam (- 30%), and northern provinces of Son La, Ha Giang and Bac Ninh (- 27.1%, - 19.5%, and - 16.8%, respectively).

124,700 firms exit

In the first eight months of this year, Vietnam welcomed 103,700 new businesses and 45,700 firms resuming operations for 149,400 new players in total, down 0.03% year-on-year.

The wholesale, retail and vehicle repair sectors recorded highest number of new firms with 39,515, up 10.9% year-on-year; followed by manufacturing-processing with 12,344, down 5.4%; construction with 11,207, up 2.1%; and real estate businesses with 3,066, down 53.4%.

Meanwhile, 124,700 others left the market, up 15.6% year-on-year, including 71,800 that suspended operations, 41,100 initiating dissolution procedures and 11,800 completing dissolution procedures.

The grouping of wholesale, retail and vehicle repair firms recorded highest number of dissolved companies at 4,428, up 3.3% year-on-year; followed by manufacturing-processing with 1,312, down 10.6%; construction with 860, down 25.7%; and real estate business with 855, up 10.8%.