The GSO said the IIP in the first seven months of this year soared 8.5% year-on-year. The index saw a yearly decline of one% in last year’s corresponding period.

The manufacturing and processing sector increased by 9.5%. Electricity production and distribution was up by 12.4% and water supply, waste and wastewater management and treatment activities up by 7.2%. The mining sector dropped by 6.2%.

Sectors that recorded a significant IIP rise were rubber and plastic, up 29%, furniture (21.5%), chemical and chemical products (17%), metal production (13%) and electronic products, computers and optical products (11.1%).

Those which posted a decline in IIP were crude oil and natural gas exploitation, down 12.4%; repair, maintenance and installation of machinery and equipment (3%); and coal mining (1.3%).

Some industrial products showed a rise in IIP from January to July, including steel bars and angle steel (31%), rolled steel (17.8%), NPK fertiliser (14%), powdered milk (12.3%) and phone components (12%).

By contrast, the IIP of several goods decreased compared to the same period last year such as natural gas and liquefied petroleum gas (16.9%), crude oil (7.1%), beer (3.8%) and mobile phones (3%).

According to the GSO, the IIP surged in 66 localities such as Lai Chau (43%), Phu Tho (39%), Bac Giang (28%), Binh Phuoc (17%) and Thanh Hoa (15%).

Meanwhile, the index dropped in three localities including Quang Ngai (4.3%), Ha Tinh (2.1%) and Gia Lai (2%) during the reviewed period.

The GSO also said that the number of workers in industrial enterprises as of July 1, 2024, increased one% month-on-month and 3.3% year-on-year.

During a conference in Hanoi on July 29, Pham Tuan Anh, deputy director of the Department of Industry under the Ministry of Industry and Trade (MoIT) said the department has focused on assisting enterprises that operate in processing and manufacturing and supporting industries with applying and transferring technology and fostering work force training.

Anh said the department has also helped these firms connect with multinational assembly corporations and large suppliers in the world to find product outlets to participate in the supply chain of FDI enterprises.

Despite these positive figures seen in the first seven months, Vietnam’s industry still faces many challenges in the short and long term, according to the MoIT’s Department of Industry.

The internal strength of domestic manufacturing industries is still weak and major industrial bottlenecks in the past years have not been effectively overcome. Industrial production still depends largely on external factors, especially on the FDI sector.

The added value of domestic industries is still low, while supporting industries are underdeveloped, leading to the lack of many domestic hi-tech industrial products.

On the other hand, industrial production has not recovered comprehensively. Some key manufacturing industries, such as smartphones, televisions, cars and crude iron and steel, have declined compared to the same period in 2023.

Meanwhile, some key export products, like footwear, wood, phones and components, recovered but have not yet returned to their peak of 2022.

The situation in the world and region will continue to be complicated and volatile in the last six months of 2024, the department said.

Geo-political tensions and competition with major countries are expected to increase. While the recovery of major trading partners is still slow, there is still a risk of disruption to the global supply and production chains.

The MoIT said it will promote the operation of new industrial production projects, creating more motivation for production development and goods for export.

The ministry said it will continue to effectively implement supportive policies for enterprises approved by the Government to remove difficulties and obstacles in production and business activities, especially in major industries such as textiles, garments, footwear, automobiles, mechanical engineering and steel.

The ministry will also focus on perfecting institutions, policies, laws and development strategies for several foundation industries, which will motivate the development of other industries over the short and long term.

In addition, it continues to effectively implement cooperation programmes with localities to restore and promote the growth of the industrial sector in localities and key economic regions.

He urged the firm to show accelerated, decisive, effective, and sustainable transformations, fostering closer and more efficient coordination with ministries, agencies, localities, and businesses.

Highlighting the nation’s developmental goals for 2030 and 2045, and strategic breakthroughs and major tasks outlined at the 13th National Party Congress, the PM stressed the importance of strong economic breakthroughs in 2025, the final year of the five-year socio-economic development plan (2021-2025). To achieve this, state-owned enterprises, especially Petrovietnam, must thoroughly review their business plans for 2025, aiming for the highest possible double-digit growth rate.

The Government leader said Petrovietnam should surpass its limits, achieve annual growth rates of 15-20% by 2025, and contribute to the national GDP growth rate of 8% that year and double-digit rate in following years.

He encouraged the group to adopt intelligent corporate governance practices, strictly comply with safety, security, and environmental protection regulations, and ensure the safe and efficient operation of its facilities.

PM Chinh asked Petrovietnam to develop a strategy and restructuring plan aligned with the sector’s goal of becoming a national industrial and energy corporation. The group must uphold its dominance in the traditional oil and gas area while expanding into renewable and clean energy, enhancing its position in global energy value chains, he said.

He called for the modernisation of infrastructure and mastery of offshore wind power technologies, including the development of turbines, blades, and foundations, alongside the enhancement of human resources training and governance capacity.

He instructed the group to effectively implement the Politburo’s Conclusion No. 76-KL/TW and the Government’s Resolution No. 38/NQ-CP on the development strategy for Vietnam’s oil and gas sector. At the same time, it must promote innovation, technology improvement, and digital transformation with a focus on building a database, he said.

The PM highlighted Petrovietnam’s critical role in ensuring energy, food, economic, maritime sovereignty and social security, underlined that the group’s achievements in 2024 and throughout its 63-year history have made significant contributions to the country’s socio-economic development, the safeguarding of national sovereignty, and ensuring national energy security.

In 2024, Petrovietnam has fully met and surpassed critical targets across all operational fields, including oil and gas production, power generation, and fertiliser production, achieving high growth rates. The group ensured uninterrupted safety and security across all units, facilities, plants, and drilling rigs. Remarkably, domestic crude oil production targets for 2024 were achieved two months and three days ahead of schedule.

Petrovietnam set a new record in total revenue, surpassing the milestone of 1 quadrillion VND, a 36% increase compared to the pre-COVID-19 period, contributing nearly 9% of the country’s GDP and paying 165 trillion VND (6.48 billion USD) into the State budget, a 52% increase compared to the pre-pandemic period.

Strategic projects such as the Thai Binh 2 thermal power plant and the Nhon Trach 3 and 4 power plants were implemented on schedule. Additionally, the group took the lead in renewable energy, particularly offshore wind power.

For the first time, Petrovietnam achieved record-breaking growth across all financial indicators compared to the pre-COVID-19 period. Consolidated revenue reached 601 trillion VND, up 51%; revenue from the parent company alone totalled 270 trillion VND, a 237% increase; and pre-tax profits of the parent company stood at 35.1 trillion VND, a 45% increase. Consolidated profits remained strong, maintaining over USD 2.3 billion annually. With these results, the group surpassed its comprehensive five-year financial targets, approved by the Prime Minister, in just four years (2021-2025).