The industrial production in the first two months of the year increased by 5.7% compared to the same period last year.

According to data released by the General Statistics Office on February 29, industrial production in February 2024 is estimated to have decreased by 18% compared to the previous month and by 6.8% year-on-year. This decline is mainly due to the Lunar New Year (Tet Giap Thin) holiday occurring entirely in February 2024, while the previous year’s holiday (Tet Quy Mao) took place in January, leaving February 2023 unaffected.

In the first two months of 2024, the Index of Industrial Production (IIP) is estimated to have increased by 5.7% compared to the same period last year.

The February IIP saw decreases across key sectors: mining dropped by 15.3%, manufacturing and processing by 6.5%, electricity generation and distribution by 3.6%, and water supply and waste management by 1.1%. Several provinces with large industrial bases recorded significant month-on-month declines, such as Vinh Long (-27.2%), Hai Duong (-25.5%), Ho Chi Minh City (-24.3%), Binh Duong (-24.1%), Hanoi (-20.3%), and others.

Despite February’s drop, the cumulative IIP for January–February 2024 increased by 5.7%, reversing the 2.9% decrease from the same period in 2023. The mining sector decreased by 3.5%, dragging down the overall index by 0.6 points. Meanwhile, the manufacturing and processing sector rose by 5.9% (up 5.2 points), electricity production and distribution climbed by 12.2% (up 1.1 points), and water supply and waste treatment increased by 2.5% (up 0.04 points).

Several key industries showed impressive year-on-year growth: chemical products (+27.7%), refined petroleum (+25.3%), rubber and plastic products (+24.3%), furniture (+23.4%), pharmaceuticals (+23.2%), electrical equipment (+22.1%), textiles (+17.6%), food processing (+5.8%), motor vehicles (+0.9%), and non-metallic mineral products (+0.6%).

Conversely, some sectors experienced notable declines: machinery repair and installation (-21.8%), crude oil and natural gas (-9.4%), beverages (-6.6%), electronics and optics (-2.6%), and transport equipment (-0.8%).

Several provinces posted high IIP growth due to strong performance in manufacturing and electricity production, including Bac Giang (+29%), Phu Tho (+27.6%), Ha Nam (+22.2%), Thanh Hoa and Quang Ngai (both +22.1%), Binh Phuoc (+20%), and Kien Giang (+19.7%). In electricity, Khanh Hoa led with an increase of 318.8%, followed by Tra Vinh (+102.3%), Thanh Hoa (+67.5%), Bac Giang (+17.6%), and Phu Tho (+15.5%).

In contrast, some provinces experienced minimal or negative IIP growth due to weak performance in manufacturing, mining, or electricity. For example, Lao Cai grew only 1.6%, while Bac Ninh declined 15.5%, Ca Mau dropped 10.1%, and Quang Tri fell 8.5%. Electricity output declined sharply in Son La (-41.5%), Hoa Binh (-19%), Cao Bang (-18.2%), and Thua Thien–Hue (-16.4%). Mining output fell steeply in Ha Giang (-75.9%) and Ba Ria – Vung Tau (-11%).

Key industrial products also showed notable changes. Petroleum products rose by 44.7%, NPK fertilizer by 29%, rolled steel by 24.1%, chemical paints by 22.4%, refined sugar by 21.1%, natural fiber fabrics by 20.8%, steel bars and angles by 18.6%, powdered milk by 15.3%, and electricity output by 12.1%.

Meanwhile, several products saw year-on-year declines: mobile phone components (-20.8%), natural gas (-16.1%), TVs (-13.7%), beer (-11.5%), cars (-9.8%), crude steel (-8.6%), and mobile phones (-6.7%).

As of February 1, 2024, the number of workers in industrial enterprises increased 0.3% from the previous month but fell 0.5% year-on-year. Employment in state-owned enterprises remained flat month-on-month and decreased by 0.1% year-on-year; non-state enterprises saw a 0.1% drop month-on-month and 2.2% drop year-on-year; foreign-invested enterprises increased 0.5% month-on-month and 0.4% year-on-year.

By sector, employment in mining fell slightly from the previous month but rose 0.9% year-on-year. Manufacturing employment increased 0.3% month-on-month but fell 0.7% year-on-year. Electricity, gas, steam, and air conditioning employment remained unchanged month-on-month but rose 0.5% year-on-year. Employment in water supply and waste treatment grew 0.1% month-on-month and 1.8% year-on-year.