HCMC – Vietnam’s index of industrial production (IIP) rose 10.4% in the first two months of 2026 from a year earlier, according to a report released by the National Statistics Office on March 6.
The growth exceeded the 7.5% increase recorded in the same period last year. In February alone, industrial production fell 18.4% from January as factories reduced operations during the extended Lunar New Year holiday and the number of working days declined. Output still edged up 1% compared with February 2025.
Several major industrial centers recorded sharp month-on-month declines in February. Industrial output in Haiphong City dropped 31.9%, while Quang Ninh fell 25.4%. Bac Ninh saw a 23.6% decrease and HCMC reported a 22.6% drop.
Manufacturing remained the main driver of industrial growth in January–February. The sector expanded 11.5% year-on-year and contributed 8.9 percentage points to the overall increase.
Mining output rose 5.4%, reversing a 5.2% decline recorded in the same period last year. Electricity production and distribution grew 6.3%, contributing 0.6 percentage point to the overall growth.
Water supply and waste treatment increased 2.1%, lower than the 12.9% growth seen a year earlier.
In February alone, manufacturing output rose 2.3% from a year earlier. Mining, electricity supply, and water and waste treatment declined between 4.5% and 5.6%.
Several industrial subsectors posted strong growth in the first two months. Output of non-metallic mineral products rose 33.1%, metal production increased 27.9%, household appliance manufacturing grew 20.9%, and motor vehicle production rose 20.3%.
Other sectors including paper, chemicals, wood processing, food production, and textiles also recorded growth of more than 10%.
Some industries reported declines. Hard coal and lignite mining fell 3.4%, while production of other transport equipment dropped 2.7%.
Production of several industrial products increased sharply. Cement output rose 30.5%, chemical paint production increased 27.5%, steel bars and angle steel grew 25.7%, automobiles rose 24%, and motorcycles increased 22.5%.
In contrast, urea fertilizer output declined 16.7%, clean coal production fell 6.1%, and mobile phone output dropped 4.4%.
Employment in industrial enterprises increased 0.2% in February from the previous month and rose 4% from a year earlier.
Employment at foreign-invested firms grew 5.9%, while the number of workers at state-owned enterprises fell 3%.
