Industrial production slows down in 2016

The main reason is the strong decline in the mining industry of around 6%, the General Statistics Office (GSO), which released the data, said.

On a positive note, the processing and manufacturing sector, which accounts for 75% of total industrial production in the country, increased by 11.2%. While electricity production and distribution saw a growth of 11.5%, the water supply and waste treatment sector rose 7.2%.

Industrial products that posted high IIP this year include televisions (up 70%), steel (up 27%), automobiles (up 22%), animal feed (up 18.3%), cement (up 15%) and milk powder (up 13%).

The IIP, however, declined for products such as mobile phones (down 11%), crude oil (down 10%), sugar (down 8.3%) and fertiliser (down 6%).

Among the provinces and cities that saw significant industrial production growth are the central province of Quang Nam at 30%; the northern port city of Haiphong and northern Thai Nguyen province at 24% and 17%, respectively; Hanoi at 7%; and HCM City, the southern hub, at 7.5%.

Despite a lower industrial production growth, there was an 8.4% rise in the consumer index of the manufacturing and processing industry and an 8.1% increase in its inventory index, the lowest level in the past few years, which is proof that the national economy is well on track to recovery and development, Nguyen Bich Lam, head of GSO, said.

The Ministry of Industry and Trade has already mapped out next year’s development plan for the industrial sector, and forecast an 8% rise in industrial production against this year.