AsemconnectVietnam - Industrial production continued its strong performance in the first half of 2026, with the Industrial Production Index (IIP) increasing by 10.8% – the highest level since 2019.

According to the socio-economic report for June and the second quarter of 2026, published by the General Statistics Office (Ministry of Finance) on July 3rd, Vietnam’s industrial production in the second quarter of 2026 continued its positive growth trend, with the Industrial Production Index (IIP) estimated to increase by 11.2% compared to the same period last year. Overall, in the first six months of 2026, the IIP was estimated to increase by 10.8% compared to the same period last year, the highest increase since 2019, with the manufacturing industry increasing by 11.4%.
The industrial production index (IIP) for the second quarter of 2026 was projected to increase by 11.2% year-on-year, with manufacturing increasing by 11.3%; electricity production and distribution by 12.4%; water supply, waste management and wastewater treatment by 10.3%; and mining by 7.0%.
Accordingly, for the first six months of 2026, the IIP was projected to increase by 10.8% year-on-year (compared to an 8.7% increase in the same period of 2025). Specifically, manufacturing increased by 11.4% (compared to a 10.5% increase in the same period of 2025), contributing 8.9 percentage points to the overall increase; electricity production and distribution increased by 9.6% (compared to a 4.1% increase in the same period of 2025), contributing 0.9 percentage points. The water supply, waste management and wastewater treatment sector increased by 8.9% (compared to a 10.7% increase in the same period of 2025), contributing 0.1 percentage points; the mining sector increased by 5.8% (compared to a 3.5% decrease in the same period of 2025), contributing 0.9 percentage points.
Notably, the production index for the first six months of 2026 of several key industrial sectors at level II increased compared to the same period last year, such as metal production increased by 21.5%; motor vehicle production increased by 17.7%; beverage production increased by 15.4%; production of other transport equipment increased by 15.0%; production of other non-metallic mineral products increased by 14.9%; chemical and chemical product production increased by 14.8%; production of prefabricated metal products (excluding machinery and equipment) increased by 13.9%. The production of beds, wardrobes, tables, and chairs increased by 12.6%; production of rubber and plastic products increased by 11.8%; wood processing and production of products from wood, bamboo, and rattan (excluding beds, wardrobes, tables, and chairs) increased by 11.5%; food processing increased by 11.1%; and production of electronic products, computers, and optical products increased by 10.9%.
Conversely, the Industrial Production Index (IIP) of some sectors increased only slightly or decreased, such as the production of leather and related products increased by 4.0%; and mining of hard coal and lignite decreased by 5.7%.
34 localities saw industrial growth
The report from the General Statistics Office also stated that the industrial production index for the first six months of 2026 compared to the same period last year increased in all 34 localities. Some localities achieved relatively high IIP growth due to the high growth in the processing and manufacturing industry and the electricity production and distribution sector. Conversely, some localities experienced low growth in the Industrial Production Index (IIP) due to low or declining growth in the processing and manufacturing industry; the mining industry; and the electricity production and distribution industry.
Some key industrial products in the first six months of 2026 increased compared to the same period last year, such as motorcycles increased by 32.9%; automobiles by 26.9%; rolled steel by 23.3%; processed seafood by 21.6%; refined sugar by 16.8%; beer by 14.4%; chemical paints by 14.0%; and crude oil extraction by 13.1%.
Conversely, some products decreased compared to the same period last year, such as NPK compound fertilizer decreased by 8.3%; monosodium glutamate decreased by 8.2%; coal (clean coal) and leather shoes and sandals both decreased by 5.7%.
The consumption index for the entire manufacturing industry in June increased by 1.8% compared to the previous month and by 9.0% compared to the same period last year. For the first six months of 2026, the consumption index for the entire manufacturing industry increased by 10.8% compared to the same period of 2025 (compared to a 9.8% increase in the same period of 2025).
The inventory index for the entire manufacturing industry as of June 30, 2026 was estimated to have increased by 5.3% compared to the same period last month and by 13.3% compared to the same period last year. The average inventory ratio for the entire manufacturing industry in the first six months of 2026 was 82.2% (average for the same period in 2025 was 85.7%).
Furthermore, the number of workers employed in industrial enterprises as of June 1, 2026 increased by 1.0% compared to the previous month and by 3.1% compared to the same period last year. Specifically, the number of workers in state-owned enterprises remained unchanged and increased by 1.4%; in non-state enterprises, it increased by 0.5% and 2.4%; and in foreign-invested enterprises, it increased by 1.3% and 3.1%.
By sector, the number of workers employed in mining enterprises remained unchanged compared to the previous month and decreased by 0.6% compared to the same period last year; correspondingly, the manufacturing sector increased by 1.0% and 3.2%; and the electricity, gas, hot water, steam and air conditioning production and distribution sector increased by 0.1% and 2.1%. The water supply sector and waste and wastewater management and treatment activities increased by 0.1% and 3.8%, respectively.
CK
Source: VITIC/congthuong.vn