Industrial production slows to 4.4% in August
Vietnam’s index of industrial production (IIP) in August increased by only 4.4% compared to last year’s same period, much lower than the 7% rise of last month.
The General Statistics Office (GSO) reported the processing and manufacturing sectors increased 6.9% from a year earlier, production and distribution of electricity jumped 8.4% and water supply, sewage and waste management soared 9.5%.
By contrast, the mining sector fell by 5.2%.
The country’s IIP in the past eight months of the year rose 5.3% against the same period last year. However, many industries exceeded the figure, such as prefabriacted metal, chemical products, paper, medicines, and pharmaceuticals and drink manufacturing posted growth of between 8.5% and 12.9%.
Production of electronic, computer and optical products fell 0.5% on year, metal manufacturing decreased by 1.9% mining and quarrying of coal and lignite tumbled 3.4% and production of beds, wardrobes, tables and chairs dropped 6.2%.
Other mining and quarrying operation downed 6.4% year-on-year.
Quang Ngai topped the list of cities and provinces with an IIP increase of 26.8%, followed by Vinh Phuc (20.3), Danang (10.3%) and Hai Duong (9.5%).
Meanwhile, IIP of Ba Ria-Vung Tau and Quang Ninh provinces dropped 1.1%, the GSO reported.
GSO experts attributed the low increase in industrial production to high stockpiles in the manufacturing and processing sectors, which account for nearly 80% of the country’s total industrial production value.
By August 1, the inventory index of the manufacturing and processing industries was 9%, up 0.2% against the previous month.
There were also large stockpiles of chemicals, engines and food.