HCMC – Vietnam’s index of industrial production (IIP) rose by 8.3% year-on-year in the first 10 months of 2023, led by strong growth in manufacturing, processing, and electricity production, according to the General Statistics Office of Vietnam.
The manufacturing and processing sector posted a notable 9.6% increase; electricity production and distribution grew 10.3%; and water supply was up 9.5%. However, mining output declined by 7.2%, reflecting challenges within the sector.
Significant contributors to this growth included rubber and plastics (up 26.3%), furniture manufacturing (up 24.8%), energy (up 16%), chemicals (up 14.6%), and automobile production (up 14%). In contrast, oil and gas extraction dipped by 11.8%, coal production dropped by 5.9%, and machinery repair slid by 3.9%.
Regional data showed that 60 out of the country’s 63 provinces and centrally-run cities experienced IIP gains, with strong manufacturing growth seen in Lai Chau, Phu Tho, and Bac Giang, and significant increases in electricity production in Khanh Hoa, Dien Bien, and Cao Bang.
Business dynamics showed positive signs as well, with nearly 14,200 new businesses established in October, registering VND153.5 trillion in combined capital, a monthly increase of 26.5% in entries and 65.4% in capital. This month saw the creation of approximately 80,500 jobs.
While the number of new businesses was down slightly year-on-year, the overall scale and capital per enterprise improved. Some 8,700 firms resumed operations in the month.
From January to October, over 136,100 new businesses were registered, totaling nearly VND1,320 trillion in capital, up by 4.1% year-on-year. However, the registered workforce decreased by 8.7% to 815,600, while the average capital per new business rose to VND9.6 billion.
Sector-wise, new businesses in agriculture, forestry, and fishery fell by 5.2%, while industrial and construction sectors saw a slight 0.5% dip. In contrast, the services sector grew by 2.7%.
Despite these gains, challenges remain. Over 92,100 businesses suspended operations through October, a 13.6% year-on-year increase, with 63,700 firms exiting the market and nearly 17,400 dissolved.
