Industrial production index increased by 7.2% in the first two months of the year.

Many positive results

According to the report, although the Lunar New Year of At Ty took place in January 2025, the number of working days was less than in December 2024 and the same period last year, production and business activities in the first two months of 2025 still achieved positive results. However, the Purchasing Managers' Index of the Vietnamese manufacturing industry in February 2025 was still below the average threshold, reaching only 49.2 points; in which, the highlights were: Output and the number of new orders continued to decrease; employment decreased for the fifth consecutive month and selling prices decreased as the cost increase slowed down, partly showing the production situation in February 2025. Accordingly, industrial production in February 2025 is estimated to decrease by 2.2% compared to the previous month but increase by 17.2% compared to the same period last year. Of which, the production index of the processing and manufacturing industry increased by 20% over the same period last year; electricity production and distribution increased by 9.9%; water supply, waste and wastewater management and treatment activities increased by 13.9%; and the mining industry alone increased by 0.4%.

In the first two months of 2025, the index of industrial production (IIP) of the whole industry increased by 7.2% over the same period last year (in the same period in 2024, it increased by 6.5%). Of which, the processing and manufacturing industry increased by 9.3% (in the same period in 2024, it increased by 6.6%), contributing 7.9 percentage points to the overall increase; the electricity production and distribution industry increased by 2.3% (in the same period in 2024, it increased by 13.7%), contributing 0.2 percentage points; the water supply, waste and wastewater management and treatment industry increased by 8.0% (in the same period in 2024, it increased by 1.4%), contributing 0.1 percentage points; the mining industry decreased by 6.4% (in the same period in 2024, it decreased by 1.9%), reducing the overall increase by 1.0 percentage point.

The industrial production index of some key secondary industries in the first two months of 2025 increased compared to the same period last year: Production of motor vehicles increased by 53.5%; production of leather and related products increased by 22.5%; production of beds, cabinets, tables and chairs increased by 19.8%; production of costumes increased by 15.3%; wood processing and production of products from wood, bamboo, rattan... increased by 12.5%; textiles increased by 12.2%; production of other means of transport increased by 12.1%; production of rubber and plastic products increased by 11.3%; production of electronic products, computers and optical products increased by 9.5%; food processing increased by 7.4%. However, the IIP index of some industries decreased compared to the same period last year such as: Crude oil and natural gas exploitation decreased by 12.0%; Production of drugs, pharmaceutical chemicals and medicinal materials decreased by 10.4%; production of coke and refined petroleum products decreased by 3.6%; production of tobacco products decreased by 2.8%; production of electrical equipment decreased by 1.7%.

The industrial production index in the first two months of 2025 compared to the same period last year increased in 58 localities and decreased in 5 localities nationwide. Some localities had a fairly high increase in the IIP index due to the high increase in the processing and manufacturing industry; the electricity production and distribution industry. In particular: some localities had a high increase in the production index of the processing and manufacturing industry compared to the same period last year such as: Phu Tho increased by 48.5%; Bac Kan increased by 41.4%; Bac Giang increased by 26.8%; Thanh Hoa increased by 19.9%; Quang Nam increased by 19.5%; Nam Dinh increased by 18.0%; Kien Giang increased by 17.8%; some localities had a high increase in the production index of the electricity production and distribution industry such as: Tra Vinh increased by 51.3%; Hoa Binh increased by 43.6%; Quang Nam increased by 13.8%; Kien Giang increased by 12.7%; Ben Tre increased by 9.1%. However, some localities had low or decreasing IIP index due to low or decreasing growth in the processing and manufacturing industry; mining industry and electricity production and distribution industry. In particular, localities with production index of processing and manufacturing industry decreased compared to the same period last year such as: Ha Tinh decreased by 11.1%; Ca Mau decreased by 4.6%; Cao Bang decreased by 3.2%; Quang Ngai decreased by 0.5%; some localities had index of electricity production and distribution industry decreased compared to the same period last year: Bac Lieu decreased by 29.7%; Ca Mau decreased by 16.5%; Lao Cai decreased by 9.0%; Ha Tinh decreased by 5.7%. Localities with production index of mining industry in the first two months of 2025 compared to the same period last year: Gia Lai decreased by 60.7%; Ba Ria - Vung Tau decreased by 13.7%; Hanoi decreased by 3.7%.

Some key industrial products in the first two months of 2025 increased compared to the same period last year, such as: Automobiles increased by 106.5%; televisions increased by 58.1%; natural fiber textiles increased by 18.0%; motorbikes increased by 17.9%; casual wear increased by 14.0%; leather shoes and sandals increased by 9.2%; aquatic feed increased by 7.2%; NPK mixed fertilizer increased by 6.9%; cement increased by 6.6%. However, some products decreased compared to the same period last year: Gaseous natural gas decreased by 15.8%; crude oil decreased by 8.1%; LPG decreased by 7.9%; gasoline decreased by 4.5%; rolled steel decreased by 3.0%; cigarettes decreased by 2.8%.

Focus on key task groups

The world context is forecast to have major and unpredictable changes with many intertwined opportunities and challenges, in which, a number of major trends have a major impact on the industrial and commercial development of Vietnam. The Ministry of Industry and Trade continues to focus on actively and effectively implementing the assigned tasks in Resolution No. 01/NQ-CP dated January 8, 2025 of the Government on the main tasks and solutions to implement the Socio-Economic Development Plan and State Budget Estimates for 2025 and Resolution No. 02/NQ-CP dated January 8, 2025 of the Government on the main tasks and solutions to improve the business environment, enhance national competitiveness in 2025 and the Action Program of the Industry and Trade sector to implement the above Resolutions of the Government.

In the field of industrial development, focus on removing obstacles for projects in the fields of industry and energy, promote the development of equipment manufacturing industry serving the renewable energy industry (solar power, offshore wind power, etc.), localize the railway industry serving the North-South high-speed railway and national railway projects to soon put these resources into exploitation to serve economic development.

Actively coordinate with relevant ministries and agencies to implement solutions such as: encouraging enterprises to expand their investment scale in terms of capital and scope in priority sectors and fields. Calling on large, multinational corporations to participate in investing in important projects in the national key project portfolio. Creating opportunities for Vietnamese industrial enterprises to exchange and connect with businesses as well as enhancing promotion, attracting and seeking investment partners from abroad.

Support businesses to increase the application of advanced technical solutions, optimize technological indicators, and establish advanced consumption norms based on reasonable models (labor norms, material consumption norms, etc.) to reduce production costs at a reasonable level and ensure production and business efficiency.

Closely coordinate with associations and enterprises to continue to remove difficulties in production and business activities of enterprises; Timely inform industry associations and enterprises about developments in export markets to promptly adjust appropriate production plans and orientate the search for orders from markets; Research and propose support and incentive policies for enterprises such as registration fees, special consumption tax, import tax on spare parts for domestic production, etc.

Focus on implementing activities to connect supply and demand, search for domestic and foreign markets, especially export markets. Apply diplomatic dialogue channels and through the system of Trade Offices to actively seek new opportunities and orders for export industries, seek and expand new export markets in addition to traditional markets... Implement trade promotion activities in the direction of market diversification, effectively exploit market opening opportunities in Free Trade Agreements to boost exports to key markets, large markets; Strengthen exploitation of new markets, potential markets.

Continue to promote administrative reforms, create favorable conditions for businesses such as: reviewing, proposing amendments and supplements to legal regulations that still cause difficulties, congestion, and hinder investment, production, business activities, etc.

Source: https://moit.gov.vn/tin-tuc/phat-trien-cong-nghiep/chi-so-san-xuat-toan-nganh-cong-nghiep-tang-7-2-trong-hai-thang-dau-nam.html