Industrial production index up 11.2 percent in May

Vietnam’s index of industrial production (IIP) in May rose by 11.2 percent over the previous month but decreased by 3.1 percent year on year, according to the General Statistics Office (GSO).

The growth of the May IIP was a positive signal during Vietnam’s fight against the COVID-19 pandemic and restoring development of the economy, the GSO said. At present, the pandemic is under control nationwide.

Of the figure, industrial production decreased by 13 percent in the mining industry; 2.4 percent in the processing and manufacturing sector; 2 percent in the electricity production and distribution industry; and 2.3 percent in the water supply and waste treatment sector.

The GSO also said the IIP in the first five months of this year increased by 1 percent over the same period last year. However, this figure was much lower than the growth of 9.5 percent in the first five months of 2019.

During the first five months, the index surged by 2.2 percent in the processing and manufacturing industry year on year, lower than the growth rate of 10.9 percent in the first five months of 2019 compared to the same period of 2018.

The index increased by 2.6 percent in the electricity production and distribution industry and 2.9 percent in the water supply and waste treatment sector. However, the index of the mining industry dropped by 8.1 percent year on year.

The GSO reported that due to the complicated development of COVID-19, the supply chain of raw materials for production has been interrupted, thereby seriously affecting the domestic industrial production.

Some industries saw a strong decrease in IIP during the first five months, including support services for mining (36.5 percent); repair, maintenance and installation of machinery and equipment (16.4 percent); motor vehicle production (16.3 percent); auto and motorcycle production (15.6 percent); and beverage production (14.6 percent).

Meanwhile, some other industries gained IIP growth in the first five months compared to the same period of last year. They included the manufacture of medicines, pharmaceutical chemicals and medicinal materials (25.9 percent); production of coke and refined petroleum products (12.9 percent); pulp and paper products (9.3 percent); and production of chemical products (9.1 percent).

Source: VNA

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