Unveiling Vietnam’s Industrial Production Landscape in January 2024

Overview

In the dynamic realm of Vietnam’s industrial production, January 2024 marked a pivotal moment for Vietnam’s economic landscape, as the Index of Industrial Production (IIP) showcased an impressive 18.3% increase compared to the same period last year. This Insightful revelation comes from the authoritative General Statistics Office (GSO), which meticulously monitors and reports on the nation’s economic indicators.

Fluctuations and Trends

Despite this noteworthy annual surge, a subtle dip of 4.4% was observed in January compared to the previous month, mirroring a trend reminiscent of the preceding year, where a temporary decline gave way to robust growth in subsequent months. The G50 views this pattern as a potential precursor to a surge in the IIP in the months to come, indicating a cyclical nature that holds promise for sustained growth.

Sectoral Contributions

The manufacturing and processing sector emerged as the protagonist in this economic narrative, contributing a substantial 15.1 percentage points to the overall. growth, boasting an impressive 19.3% year-on-year increase. Other noteworthy contributors include electricity production and distribution (21.6% increase), water supply, waste management, and wastewater treatment (5.7% increase), and mining (7.3% increase),

Industry-specific Growth

Delving into the specifics, January witnessed remarkable growth across various Industries. Notable surges were observed in furniture (67% growth), textile and garment (46% growth), electrical equipment (43% growth), metal production (39% growth), chemicals and chemical products (38% growth), leather and leather-made

goods (35% growth), and food processing (17% growth).

Product-specific Insights

The landscape of specific products mirrored this growth trend, Products such as sugar (66% growth), rolled steel (60% growth), textiles made from natural fibers (57% growth), powdered milk (47% growth), chemical paint (45% growth), and NPK fertilizer (41% growth) experienced positive IIP growth.

However, It’s imperative to note that certain products faced declines in IIP, including phone components (15% decrease), televisions (11% decrease), handsets (4%) decrease), and crude oil (2% decrease).

Geographical Distribution

Analyzing the geographical distribution of IIP, a total of 60 localities were reported. increases, with standout growth in Quảng Ninh (160% increase), Bắc Giang (58% Increase), Nam Định (156% Increase), Vĩnh Long (51% increase), Kiên Giang (48% increase), and Phú Thọ (40% increase). This geographic diversity highlights the widespread nature of the Industrial growth, contributing to the overall economic vitality of Vietnam.

Workforce Dynamics

Turning our attention to the human capital driving this economic engine, as of January 1, 2024, the number of workers in industrial enterprises increased by 0.5% month-on-month and 0.1% year-on-year. State-owned enterprises maintained stability from the previous month but exhibited a 0.9% year-on-year decrease. Non-state enterprises saw a 0.1% month-on-month increase but faced a 1% year-on-year decrease. Foreign-invested enterprises experienced a 0.7% month-on-month Increase but saw an 0.8% year-on-year decrease.

Conclusion

In conclusion, the January 2024 snapshot of Vietnam’s Index of Industrial Production paints a vivid picture of a resilient and evolving economy. The intricate dance of growth and decline, the sectoral nuances, and the geographic diversity collectively contribute to the nation’s economic tapestry. As we navigate through the intricate web of statistics and trends, it becomes evident that Vietnam’s industrial prowess is poised for substantial growth in the upcoming months.

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