Vietnam IIP up 0.7% MoM, 11.2% YoY in Jul 2024; up 8.5% YoY in Jan-Jul

It increased by 8.5 per cent YoY in the first seven months this year. The index witnessed a YoY decline of 1 per cent in the corresponding period last year.

The index for the manufacturing and processing sector increased by 9.5 per cent YoY in July.

IIP surged in 66 localities, including Lai Chau (43 per cent), Phu Tho (39 per cent), Bac Giang (28 per cent), Binh Phuoc (17 per cent) and Thanh Hoa (15 per cent).

It dropped in three localities: Quang Ngai (4.3 per cent), Ha Tinh (2.1 per cent) and Gia Lai (2 per cent) during the month.

The GSO also said that the number of workers in industrial enterprises as of July 1 increased by 1 per cent MoM and 3.3 per cent YoY.

Despite these figures, the industry still faces many challenges in the short and long term, according to the country’s department of industry.

The internal strength of domestic manufacturing industries is still weak and major industrial bottlenecks of the past few years have not been effectively addressed. Industrial production still depends largely on external factors, especially on the sector with foreign direct investment (FDI).

The added value of domestic industries is still low, while supporting industries are underdeveloped. Industrial production has also not comprehensively recovered. Some key manufacturing industries have declined compared to the same period last year.

Some key export products like footwear have recovered, but are yet to return to their 2022 peak, according to a report by a domestic media outlet.

Geopolitical tensions and competition are likely to rise, while the economic recovery of major trading partners is still slow. A risk of disruption to the global supply and production chains still remains.

Fibre2Fashion News Desk (DS)