Vietnam’s industrial production recovers in May

Vietnam’s index of industrial production (IIP) rose 2.2% in May from April and 0.1% from the same period last year, showing signs of a recovery, the General Statistics Office (GSO) reported.

The IIP in April went up 3.6% from March which saw a 0.82% decline from February.

However, the IIP in the first five months of this year dropped 2% year-on-year due to global economic difficulties which have led to a decline in orders and narrowed production.

In May, IIP growth was driven by a 5% year-on-year increase in electricity production and distribution, and 6.8% in water supply and waste-wastewater treatment. The mining sector and the manufacturing-processing sector recorded a drop of 2.9% and 0.5%, respectively.

Sub-sectors that showed strong improvements were food processing and production with 7%, chemical and chemical products with 11.9%, and tobacco with 10.2%.

The five-month IIP declined 2% year-on-year due to a drop of 3.5% in the mining sector and 2.5% in the manufacturing-processing sector. Meanwhile, the electricity production and distribution sector recorded minor growth of 0.8%, and the water supply and waste-wastewater treatment sector saw growth of 6.4%.

Major sub-sectors that posted negative growth include vehicle production with a fall of 10.1%, clothes with 8.3%, and paper and paper products with 8.5%.

Regarding cities and provinces, the best performances were recorded in the northern provinces of Bac Giang and Phu Tho with their IIP rising 15.4% and 15.2%, respectively, from January-May. Other strong performers were the Mekong Delta province of Hau Giang with 13.9%, and Thai Binh and Nam Dinh provinces, both in northern Vietnam, with 13.2% each.

The central province of Quang Nam underperformed with its IIP falling 33.2%, the worst result in the country. Other negative results were reported in the northern provinces of Bac Ninh, Ha Giang, and Lai Chau, with falls of 19%, 21.4%, and 26.5%, respectively.

Business registrations down

In May, 12,098 new businesses were registered in the country, with total registered capital of VND103,741 billion, down 9.5% and 17.5% year-on-year, respectively. They employed 74,607 people, down 16.6%.

In the first five months of this year, the figures were 61,970 enterprises and VND568,711 billion in registered capital, down 1.6% and 25.3% year-on-year, respectively. The number of employees reached 405,983, down 7.2%.

Besides, 32,989 firms resumed operations in the period, down 7.4% year-on-year.

In the five-month period, 55,193 firms suspended activities, up 20.3% year-on-year; 24,498 suspended operations awaiting bankruptcy procedures, up 34.1%; and 7,349 completed bankruptcy procedures, up 6.5%.

Overall, in the last five months, the economy welcomed 95,000 new players, down 3.7% year-on-year, and 88,000 others left, up 22.6%.