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COVER STORY

Upwards trajectory

Industrial production is forecast to increase during 2024
as a whole after rising handily in the first quarter.
By MANH DUC

rowth in industrial production in 20 per cent compared to February and facturing and processing industries
the first quarter of 2024 came in 4.1 per cent compared to March 2023. increased 1.4 per cent and 1.1 per cent;
G at 6.18 per cent year-on-year, con- The IIP in the first quarter rose by in electricity, gas, steam, and air condi-
tributing 2.02 percentage points to overall 5.7 per cent year-on-year. The manufac- tioning supply remained unchanged com-
GDP growth, which was estimated at 5.66 turing and processing sector’s index pared to the previous month and increased
per cent year-on-year, or higher than the increased 5.9 per cent year-on-year, con- 0.8 per cent year-on-year; and in water
figure in the opening quarter during the tributing 5.2 percentage points, while supply, waste and wastewater manage-
2020-2023 period, according to the Min- electricity production and distribution ment and remediation activities increased
istry of Industry and Trade (MoIT). rose 12.1 per cent, contributing 1.1 per- 0.1 per cent and 1.2 per cent.
centage points, and water supply and
Growth engine waste and wastewater management and Improvements in production and trade
The manufacturing and processing treatment rose 4 per cent, contributing The manufacturing and processing
sector remains a growth engine of Viet- 0.1 percentage points. The mining indus- sector retained its leading position in
nam’s economy, expanding by 6.98 per try lost 4.1 per cent, shaving 0.7 percentage
cent in the first quarter and contributing points off overall GDP.
1.73 percentage points to overall GDP The MoIT also reported that, in the first
growth. Electricity production and dis- quarter, key sectors to record IIP growth
tribution increased 11.97 per cent, con- included chemicals and chemical products,
tributing 0.45 percentage points, while by 28.4 per cent; rubber and plastic products
water supply and waste and wastewater 25.8 per cent; electrical equipment 24.8
management and treatment rose 4.99 per per cent; coke and refined petroleum 21.7
cent, contributing 0.03 percentage points. per cent; furniture 18.1 per cent; textiles
The mining sector, meanwhile, declined 14.6 per cent; and food production and
5.84 per cent, shaving 0.2 percentage processing 4.5 per cent.
points off GDP growth. In particular, 54 of Vietnam’s 63 localities
Industrial production in March saw a registered IIP growth, including Tra Vinh,
recovery in the Index of Industrial Pro- by 102 per cent; Khanh Hoa 37 per cent;
duction (IIP), with estimated growth of Bac Giang 23.9 per cent; Thanh Hoa 20
per cent; Ha Nam 17.2 per cent; and Quang
Ninh 14 per cent.
Another positive sign in the recovery
Growth in value added, manufacturing of production and consumption was an
sector, 2020-2024 increase in the consumption index of the
Unit % manufacturing and processing sector,
7.07 with growth of 8.2 per cent year-on-year
6.5 in the first quarter. The average inventory
6.18
ratio in the quarter was 68.7 per cent
compared to 81.1 per cent last year.
5.28
Regarding employment at industrial
enterprises, as of March 1, 2024, the num-
ber of employees had increased 1.3 per
cent month-on-month and 1.1 per cent
year-on-year. Of this, the number of work-
ers at State-owned enterprises rose 0.1
0.82 per cent month-on-month and fell 0.5
per cent year-on-year; at non-State enter-
prises rose 1.1 per cent and fell 0.6 per
cent; and at foreign-invested enterprises
rose 1.5 per cent and 1.7 per cent.
By industry, the number of employees
2020 2021 2022 2023 2024 working in mining increased 0.2 per cent
over the previous month and 0.7 per cent
Source: General Statistics Office
over the same period last year; in manu-

24 Vietnam Economic Times May 1, 2024 en.vneconomy.vn