The January index slipped marginally by 0.2% compared to the previous month.

The robust performance was attributed mainly to an improvement in new orders and a longer working month, as January 2026 had six more working days than the same period last year.

Manufacturing and processing remained the main growth engine, expanding by 23.6%, followed by electricity production and distribution, up 14.1%; water supply, and waste and wastewater management, up 13.6%; and mining, which increased by 10.3%.

Industrial output rose in all 34 provinces and centrally-run cities nationwide. Strong gains were largely driven by manufacturing and processing activities and electricity production and distribution, while some localities recorded more modest increases due to slower or declining performance in manufacturing, mining, or power generation.

At the second-level classification, several key industries posted sharp year-on-year growth, notably non-metallic mineral products, up 41.9%; motor vehicle manufacturing, 36.6%; metal production, 35.4%; and chemicals and chemical products, 35.2%.

Industrial production trends showed clear divergence among product groups. Several key industrial products recorded strong growth in the first month of the year, particularly electronic components and transport equipment.

As of January 1, 2026, employment in industrial enterprises increased by 0.8% month-on-month and by 4.3% compared to the same period last year. The foreign direct investment (FDI) sector posted the fastest labour growth, at 6.0%.

By industry, employment in manufacturing and processing rose by 4.5%, electricity production and distribution by 1.9%, and water supply and waste management by 1.6%. Meanwhile, the non-state sector saw a slight year-on-year decline of 0.2% in employment.

To sustain industrial growth, the NSO urged localities to accelerate industrial restructuring towards modernisation and deeper, more efficient development, with a focus on boosting productivity, quality, value added and competitiveness in sectors where Vietnam holds advantages.

The office also stressed the need to prioritise the development of new technologies and emerging industries such as chips, semiconductors, artificial intelligence, and green, sustainable manufacturing, alongside strengthening supporting industries and linkages between foreign-invested and domestic enterprises./.