Industrial output hits four-year high in January–May 2026
According to the General Statistics Office under the Ministry of Finance, the Index of Industrial Production (IIP) increased by 9.1% in the first five months of 2026 compared with the same period last year, marking the highest growth rate in the past four years.
Notably, during the first five months of 2026, the Index of Industrial Production (IIP) increased in all 34 provinces and centrally-run cities. Several localities recorded strong industrial growth thanks to robust expansion in the manufacturing and processing sector, as well as electricity production and distribution.
Conversely, some localities posted relatively modest industrial growth due to slower growth or declines in manufacturing and processing, mining, and electricity generation and distribution.
According to the General Statistics Office under the Ministry of Finance, the IIP in May 2026 was estimated to increase by 3.3% compared with the previous month and by 8.8% year-on-year. Manufacturing and processing rose by 9.0% compared with the same period last year; water supply, waste management and wastewater treatment activities increased by 8.7%; electricity production and distribution grew by 8.5%; and mining expanded by 6.0%.
Overall, in the first five months of 2026, the IIP increased by 9.1% compared with the same period last year (compared with an 8.8% increase in the corresponding period of 2025), marking the highest growth rate for the January–May period in the past four years. Manufacturing and processing grew by 9.5% (compared with 10.9% in the same period of 2025), contributing 7.4 percentage points to overall growth. Mining increased by 5.5% (compared with a 4.1% decline in the same period of 2025), contributing 0.9 percentage points, while electricity production and distribution rose by 7.6% (compared with 4.2% in 2025), contributing 0.7 percentage points.
The General Statistics Office also reported that several key manufacturing industries recorded year-on-year growth during the first five months of 2026, including: basic metals increased by 20.2%; motor vehicles increased by 18.0%; chemicals and chemical products increased by 16.9%; other non-metallic mineral products increased by 16.2%; beverages increased by 15.1%; furniture increased by 11.6%; food processing increased by 11.2%; rubber and plastic products increased by 10.9%; and paper and paper products increased by 10.7%.
However, some industries experienced declines, including hard coal and lignite mining, which fell by 4.6%, and the manufacture of other transport equipment, which decreased by 1.0%.
During the same period, several major industrial products posted strong growth compared with a year earlier, including motorcycles increased by 36.0%; automobiles increased by 26.7%; processed seafood products increased by 21.6%; rolled steel increased by 21.5%; sugar and beer increased by 14.4%; and chemical paints increased by 14.3%. In contrast, output of some products declined, including NPK compound fertilizers increased by 6.8%; monosodium glutamate (MSG) declined by 6.0%; leather footwear declined by 5.7%; and clean coal declined by 4.7%.
Regarding employment in industrial enterprises, the General Statistics Office reported that, as of May 1, 2026, the number of employees increased by 1.1% compared with the previous month and by 3.4% year-on-year. Employment in state-owned enterprises rose by 0.1% month-on-month and 1.7% year-on-year; domestic private enterprises increased by 0.6% and 2.6%, respectively; while foreign-invested enterprises recorded growth of 1.5% and 3.4%.
By sector, employment in mining enterprises increased by 0.1% compared with the previous month but declined by 0.1% year-on-year. Manufacturing and processing employment rose by 1.2% and 3.5%, respectively. Employment in electricity, gas, steam, and air-conditioning supply increased by 0.1% month-on-month and 3.0% year-on-year, while employment in water supply, waste management, and wastewater treatment activities rose by 0.2% and 2.8%, respectively.
Overall, industrial growth has spread across most localities. However, differences among industries and regions highlight the need for continued economic restructuring, productivity improvements, stronger development of the manufacturing sector, and measures to ensure sustainable economic growth.
Hai Phong News