Surging Industrial Production: Vietnam Hits Five-Year High in January
Vietnam's Industrial Sector Reaches New Heights in January
Dive into Vietnam's booming industrial sector, which experienced a remarkable surge in January, reaching a five-year high across various sectors, driven by a more favorable business environment and strategic partnerships.
Vietnam Manufacturing Federation's Global Impact
Vietnam Manufacturing Federation (VMF), headquartered in Hanoi with a global sales office in Singapore, recently secured a continuous order for supplying metal boxes from partners in Italy, showcasing the country's growing presence in the global manufacturing landscape. VMF's mission focuses on outsourcing manufacturing services, aiming to bridge the gap between Vietnamese manufacturing companies and foreign customers by providing comprehensive services, including tailored sourcing, project management, logistics, and supply chain management.
Stellar Performance and Promising Future
The stellar performance of VMF reflects the promising future of Vietnam's industrial sector. According to the General Statistics Office (GSO), the index for industrial production (IIP) expanded by 20.9 percent year-on-year (yoy) in January, marking the largest rise for the month since 2014.
Manufacturing and Processing Sector Leading the Growth
Nguyen Bich Lam, Head of GSO, highlighted the rebound in local industrial production, particularly in the manufacturing and processing sector, which accounts for 80 percent of Vietnam's industrial growth. This sector recorded a remarkable 23.8 percent yoy increase, contributing significantly to the overall IIP growth.
Key Sectors Driving the Surge
Apart from the surge in the electronics sector, January's high IIP was also propelled by notable growth in key sectors such as electricity manufacturing and distribution, mining, and water supply and waste treatment. Other sectors that experienced substantial year-on-yearincreases include metal ore, TV, powdered milk, garments and textiles, steel, natural gas, and beer.
Success Stories: Van Phu An JSC
For instance, Van Phu An JSC, specializing in garments and textiles in Hai Duong province, contributed to the sector's growth. The firm's director attributed their success to improved economic conditions and government policies supporting businesses. Increased investments in production, a surge in export turnover, and favorable access to bank loans due to reduced lending rates and simplified administrative procedures have facilitated growth.
Regional Growth Highlights
GSO reports that many cities and provinces saw a significant yoy increase in IIP in January, including Da Nang, Bac Ninh, Hai Phong, Quang Ninh, Vinh Phuc, and Binh Duong. Bac Ninh's exceptional growth is attributed to Samsung, which accounts for over 90 percent of the province's industrial production value. In 2021, Samsung's export turnover exceeded $50 billion, comprising 25 percent of Vietnam's total export turnover.
Conclusion
Vietnam's industrial sector is poised for continued growth, driven by strategic partnerships, government support, and increasing global demand. The impressive performance in January sets a positive tone for the rest of the year.
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