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Industrial production continues positive growth pace

Published

3 days ago

March 15, 2025

The country’s index of industrial production (IIP) is continuing its positive growth pace in July with an increase of 0.7% over June and 11.2% compared to the same period last year, according to the General Statistics Office (GSO).

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.

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E-tax system resumes full operations after temporary suspension

Published

36 seconds ago

March 17, 2025

Industrialzone.net

The suspension, which lasted from 5pm on March 12 until 8am on March 17, was necessary to enhance tax management and implement structural changes.

E-tax system resumes full operations after temporary suspension

The tax authority has stated that all systems are now running smoothly, ensuring seamless tax transactions for individuals, businesses and foreign entities. (Photo: baodautu.vn)

Hanoi – Vietnam’s electronic tax system has resumed full operations starting at 8am on March 17, after a temporary suspension for system upgrades and data restructuring, the tax authority announced.

The suspension, which lasted from 5pm on March 12 until 8am on March 17, was necessary to enhance tax management and implement structural changes.

During this period, certain services such as electronic tax payment (eTax), eTax Mobile and tax applications for individuals were temporarily halted, while other functions remained accessible.

Foreign businesses operating in Vietnam can now fully access the e-portal for foreign suppliers, which remained operational but may have experienced minor delays in processing transactions during the upgrade.

Director of the Department of Taxation Mai Xuan Thanh instructed tax departments to ensure secure data migration and a smooth transition, allowing businesses and individuals to resume using the e-tax system without disruption.

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Central Vietnam province aims to add 2,300 MW of wind power to development plan

Published

1 hour ago

March 17, 2025

Industrialzone.net

Vietnam’s central province of Quang Tri plans to add 1,800 MW of 43 land-based wind power projects and 500 MW of offshore wind power to the draft implementation scheme of the national power development plan VIII (PDP VIII).

The draft scheme also features 260.5 MW of hydropower, 119.6 MW of solar power, and 23 MW of rooftop solar power for self-consumption, Quang Tri authorities discussed last week.

Quang Tri's acting Chairman Ha Sy Dong (standing) speaks at a meeting in the province, central Vietnam, March 14, 2025. Photo courtesy of Quang Tri newspaper. — Quang Tri’s acting Chairman Ha Sy Dong (standing) speaks at a meeting in the province, central Vietnam, March 14, 2025. Photo courtesy of Quang Tri newspaper.

Until 2030, Quang Tri aims to facilitate power import of 2,000 MW from Laos.

Provincial authorities will also facilitate investors of 500 kV, 200 kV, and 100 kV power grid projects, in line with the deployment of wind, solar, gas-fired power, and imported power (from Laos) projects.

Addressing the meeting, Quang Tri’s acting Chairman Ha Sy Dong asked the Department of Industry and Trade to collaborate with investors to complete the applications for in-principle approval by March 20.

He also requested the Department of Finance to finalize the land recovery plan for site clearance by March 25.

Vietnam’s current PDP VIII has 6,000 MW of offshore wind power, including 500 MW in the central-central region.

In February 2025, Vietnamese Ministry of Industry and Trade proposed delaying the development of offshore wind power until after 2030, instead of meeting the initial target of 6,000 MW by 2030.

However, in March 2025, the Government requested that offshore wind power projects under the PDP VIII must complete by 2030.

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Manufacturing, processing push up industrial growth in five months

Published

3 hours ago

March 17, 2025

Industrialzone.net

Vietnam’s industrial sector experienced positive growth in the January-May period, with 55 out of 63 provinces and centrally-run cities nationwide reporting annual increases in the Index of Industrial Production (IIP), according to the General Statistics Office (GSO).

The GSO identified manufacturing, processing, and electricity production and distribution as the primary drivers of the growth. Provinces recording high growth included Phu Tho (31.2%), Bac Giang (24.9%), and Binh Phuoc (14.8%). However, some other provinces like Ha Tinh, Quang Ngai and Ca Mau saw respective declines of 9%, 8.25% and 2.5% in their indexes.

Overall, the national IIP in May continued its upward trajectory, rising 3.9% month-on-month and 8.9% year-on-year. The five-month period saw an yearly increase of 6.8%.

A deeper analysis revealed the processing and manufacturing industries as the key contributor to the growth, boasting a 7.3% rise and adding 6.4 percentage points to the overall increase. The electricity production and distribution sector also performed strongly, with 12.7% growth, contributing 1.1 percentage points. Additionally, the water supply, waste, and wastewater management sector went up 6.3%, adding 0.1 percentage point. However, the mining sector experienced a decline of 5.2%, resulting in a reduction of 0.8 percentage point in the overall growth.

Specific product categories within the processing and manufacturing sectors posted impressive growth. Production of rubber and plastic products surged by 27.4%, while electrical equipment saw a 24% increase. Production of chemicals and chemical products grew by 20.1%, followed by beds, cabinets, tables, and chairs (19.6%) and metal products (13.2%).

In light of these findings, the GSO proposed a series of recommendations to further bolster Vietnam’s industrial development. It urged the Ministry of Industry and Trade (MoIT) to prioritise a structural shift toward increasing the proportion of processing and manufacturing industries within the overall industrial sector, while simultaneously reducing reliance on the assembly and processing of imported products; enhance enterprise competitiveness and incentivise the use of domestically produced goods via technical barriers for certain imports.

Additionally, the GSO recommended that the MoIT refine key institutions such as the Key Industrial Law and the Law on Chemicals. Expediting the disbursement of public investment capital and hastening crucial projects in the fields of electricity, oil and gas, manufacturing, processing, and mining are also highlighted as crucial steps.

Head of the GSO’s Industrial and Construction Statistics Department Phi Thi Huong Nga suggested that localities should launch more stimulus and promotion schemes to increase purchasing power while helping industrial firms find partners and expand markets through trade exhibitions.