AsemconnectVietnam - According to the report on the implementation of Resolution No. 01/NQ – CP on the situation of industrial production and commercial activities in December and the whole year of 2023, although the world economic situation still has many difficulties, the demand has not yet recovered, but with a stable macroeconomic foundation, along with synchronous measures to support domestic production and expand domestic and export markets being implemented drastically, the country’s industrial production and trade activities in December of 2023 continued to show positive signs even though they did not grow dramatically. In comparison to the same period last year, Vietnam’s industrial production continued to grow again.

Industrial production
In December of 2023, the Purchasing Managers' Index (PMI) of our country's manufacturing industry reached 48.9 points, still below the threshold of 50 points, showing that business conditions in the industry declined for the fourth consecutive month. Continued weak demand contributed to a decline in new orders for the second consecutive month, corresponding to a decline in output. However, as comparison to 47.3 points in November, the decline rate of our country's manufacturing industry has shown signs of being slower. In general, the average PMI index of 2023 was at the lowest level since the outbreak of the Covid -19 pandemic in 2020.
However, thanks to efforts to find orders to complete production and business plans of year as well as preparing goods for year-end consumption by manufacturing enterprises, industrial production continued to change positively. Therefore, the index of industrial production (IIP) in December of 2023 was basically stable compared to the previous month when it only increased by 0.1% but compared to the same period last year increased by 5.8%, one of the months with the highest increase since the beginning of the year (only after the 7% increase in February 2023).
In particular, as comparison to the same period last year, the processing and manufacturing industry increased by 7.6%; production and distribution of electricity, gas, hot water, steam and air conditioning increased by 5.9%; water supply, waste and wastewater management and treatment increased by 11.5%; The mining industry alone decreased by 12.8%.
However, due to difficulties from the global economic downturn, especially in the first months of the year, it has affected the country's industrial production results. So for the whole year 2023, the production index of the entire industry only increased by 1.5% over the same period last year (in the same period of 2022 it increased by 7.4%), but this is the highest increase since the beginning of the year, showing a positive recovery trend in industrial production (totally in the first 8 months, IIP decreased; but in the first 9 months, IIP only increased 0.2%). Of which, the processing and manufacturing industry increased by 1.6% (same period of 2022 it increased by 7.7%). The production and distribution of electricity, gas, hot water, steam and air conditioning increased by 3.5%; water supply industry, waste and wastewater management and treatment activities increased by 5.8%; the mining industry decreased by 3.9%.
The added value of the entire industry in 2023 was estimated to increase by 3.02% compared to the previous year. Of which, the processing and manufacturing industry increased by 3.62%, contributing 0.93 percentage points to the increase in total added value of the entire economy; The electricity production and distribution industry increased by 3.79%, contributing 0.14 percentage points; water supply, waste and wastewater management and treatment activities increased by 5.18%, contributing 0.03 percentage points; the mining industry alone decreased by 3.17%, a decrease of 0.10 percentage points.
The 2023 index of industrial production (IIP) of a number of key level II industries increased: the production of rubber and plastic products increased by 13.2%; chemical and chemical product production increased by 9.5%; the production of prefabricated metal products (except machinery and equipment) increased by 8.3%; metal production increased by 7.6%; production of beds, wardrobes, tables and chairs increased by 7.2%; textile increased by 7%; food production and processing increased by 6.1%.
In the opposite direction, the IIP index of some industries decreased: other means of transport production decreased by 10.7%; crude oil and natural gas exploitation decreased by 5.7%; production of products from other non-metallic minerals decreased by 4.2%; motor vehicle production decreased by 2.4%; mining of hard coal and lignite decreased by 1.6%; wood processing and production of products from wood and bamboo decreased by 1.5%; apparel production decreased by 0.9%; production of electronic products, computers and optical products decreased by 0.6%.
The industrial production index in 2023 compared to the previous year increased in 50 localities and decreased in 13 localities across the country. Some localities have had a fairly high increase in the IIP index due to the processing and manufacturing industry; the electricity production and distribution industry increased.
The locality's production index of the processing and manufacturing industry increased compared to the previous year: Quang Ninh increased by 30.3%; Bac Giang increased by 20.8%; Phu Tho increased by 18.5%; Nam Dinh increased by 14.8%; Kien Giang increased by 14.2%; Ha Nam increased by 13.9%; Hai Phong increased by 13.4%.
Localities with high indexes of the electricity production and distribution industry: Khanh Hoa increased by 138.5%; Tra Vinh increased by 40.8%; Ninh Thuan increased by 15.1%; Quang Ninh increased by 12.9%; Phu Tho increased by 9.3%.
On the contrary, some localities saw a decrease in the production index of the processing and manufacturing industry in 2023 compared to the previous year, such as Hoa Binh increased 0.3%; Quang Nam decreased by 26.8%; Bac Ninh decreased by 11.3%; Vinh Long decreased by 9.4%; Soc Trang decreased by 6.1%; Lao Cai decreased by 4%; Da Nang decreased by 3.7%.
Besides, some localities saw a decrease in the index of the electricity production and distribution industry: Son La decreased by 26.1%; Ha Giang decreased by 21.6%; Lai Chau decreased by 20.8%; Quang Nam decreased by 18.7%; Hoa Binh decreased by 14.7%; Lao Cai decreased by 11.1%; (iii) localities where the mining industry decreased: Vinh Long decreased by 85.8%; Ha Giang decreased by 52.8%; Quang Nam decreased by 7.6%.
Some key industrial products in 2023 saw increase compared to the previous year: diameter increased by 30.9%; NPK mixed fertilizer increased by 18.6%; rolled steel increased by 12.7%; cigarettes increased by 10.1%; fabrics woven from natural fibers, fabrics woven from artificial fibers and fresh milk all increased by 7.5%; chemical paint increased by 7.1%; aluminum increased by 5.6%; television increased by 4.8%.
On the contrary, some products decreased compared to the previous year: motorcycles decreased by 12.6%; automobiles decreased by 12.3%; mobile phones decreased by 9.9%; bar steel and angle steel decreased by 8.9%; gaseous natural gas decreased by 7.4%.
The consumption index of the entire processing and manufacturing industry in December of 2023 increased by 3.1% over the previous month and increased by 5.1% over the same period last year. Overall in 2023, the consumption index of the entire processing and manufacturing industry increased by 1.8% compared to 2022, much lower than the 7.1% increase in 2022.
At the end of December of 2023, the inventory index of the entire processing and manufacturing industry was estimated to decrease by 1.3% compared to the previous month and increase by 19.8% compared to the same time of the previous year (in the same time of the previous year, the increase was 13.9%). The average inventory rate of the entire processing and manufacturing industry in 2023 was 87.5% higher than the rate of 78.1% in 2022.
Thus, the consumption index of the entire processing and manufacturing industry was low, while the average inventory rate of the entire processing and manufacturing industry in 2023 was higher than in 2022, showing difficulties in industrial production.
CK
Source: VITIC/moit.gov.vn