Vietnam's industrial production saw positive growth in nine months

In the third quarter alone, the IIP grew nearly 9.6%, marking an upward trend from 8.78% in the second quarter and 6.47% in the first quarter, the GSO noted in the report.

The nine-month IIP growth was driven by the manufacturing sector (up 9.8%), electricity production and distribution (up 11.1%) and water supply and waste-wastewater treatment (up 9.9%). Meanwhile, the mining sector fell 6.4%.

Some key industries with strong growth over this period included steel, up 27%; oil and gas (20%); fabrics (16%); NPK fertiliser (13%) and car manufacturing (12%).

In contrast, several other products witnessed an IIP fall year-on-year such as crude oil, down 16.5%; liquefied petroleum gas (15%); mobile phones (8%) and coal (4%), the GSO stated.

Among 63 centrally-run cities and provinces nationwide, 60 experienced a growth in IIP over the past nine months, while the remainder reported an IIP reduction.

The GSO noted that the number of workers in industrial enterprises as of September 1 increased by 1.1% month-on-month and by 5.2% year-on-year.

In particular, the number of workers in the State-owned enterprise sector remained unchanged compared to the same time last month and rose by 1% year-on-year.

The number of workers in non-state enterprises also increased by 0.9% on-month and 1% on-year, while the number in foreign-invested enterprises increased by 1.3% on-month and 7% on-year.

As of September 30, the inventory index for the processing and manufacturing industry was estimated to increase 5.2% compared to the previous month and 8.5% compared to the same period last year.

The GSO recommended the Ministry of Industry and Trade continue promoting the transition of the industrial sector towards increased contributions to the manufacturing-processing industry and reduce the proportion of machining and assembling of industrial products manufactured in Vietnam, while removing difficulties for businesses and building technical barriers for imported products.

HCM City’s industrial production up 7%

Following the overall growth of the country's industrial production, the southern economic hub of HCM City saw a 7% increase in its IIP in the nine months, the municipal Department of Industry and Trade has reported.

Industrial production activities in the city continued to recover positively during the period. This shows that the city's stimulus programmes and the connection of domestic and international supply chains have generated excellent outcomes.

In September alone, the IIP rose 3.4% against August and 11.2% from the same period last year.

Industrial production is identified as one of the pillars that affect the city's overall economic growth and have proven the effectiveness of the city's stimulus programmes. The city said it would continue to focus on promoting the development of key industries, including supporting industries and precision mechanics.

Vice Chairman of the municipal People's Committee Vo Van Hoan said it was necessary to continue implementing demand stimulus programmes and connecting domestic and international supply chains, since the localisation rate, despite remarkable results, still hasn't developed as expected.

The increasing demand of multinational corporations for domestic supply sources requires local authorities, industry associations and enterprises to make further efforts to create breakthroughs, especially in areas requiring hi-tech solutions such as aviation, electronics and automobiles.