A production line of electronic components at Suntech Vietnam Technology Co Ltd. — VNA/VNS Photo
According to the Director General of the Planning and Finance Department under the Ministry of Industry and Trade (MoIT), Bùi Huy Sơn, industrial production in the third quarter of 2024 showed stronger growth than the previous quarter, continuing the positive momentum from the end of 2023.
The added value of the industrial sector rose by 9.59 per cent compared to Q3/2023.
For the first nine months of 2024, the industrial sector's added value is estimated to have increased by 8.34 per cent year-on-year, contributing 2.71 percentage points to the overall growth of the economy’s added value.
Estimated GDP for the first nine months increased by 6.82 per cent year-on-year.
Of which, the manufacturing and processing industry was the key growth driver with a growth rate of 9.76 per cent, contributing 2.44 percentage points to GDP growth.
Additionally, the electricity production and distribution sector grew by 11.11 per cent, contributing 0.43 percentage points, while the water supply and waste treatment sector expanded by 9.83 per cent, adding 0.06 percentage points. However, the mining sector experienced a 7.01 per cent decline, reducing overall growth by 0.22 percentage points.
In September, the impact of Typhoon Yagi disrupted the production growth streak that had lasted for five consecutive months. It caused the Purchasing Managers' Index (PMI) to fall below 50 points, reaching 47.3 points compared to 52.4 points in August.
As a result, the Index of Industrial Production (IIP) saw a slight decrease of 0.2 per cent compared to the previous month.
Despite this, industrial production in September still rose by 10.8 per cent year-on-year, driven by positive recovery trends earlier in the year
Overall, the IIP for the first nine months of 2024 increased by an estimated 8.6 per cent year-on-year.
The MoIT also reported that industrial production expanded across most regions, with 60 out of 63 provinces and cities recording IIP growth over the nine months.
The consumption index for the processing and manufacturing sector also rose by 12.5 per cent year-on-year.
Meanwhile, the inventory index for the same sector increased by only 5.2 per cent at the end of September compared to the previous month and by 8.5 per cent year-on-year, which is a significant improvement from the 19.4 per cent rise in 2023. These figures indicate a positive recovery in both production and consumption.
The MoIT anticipates further growth in Q4/2024, as this period is typically a high production season to meet demand for holidays and festivals, keeping industrial production at a robust level.
However, challenges remain, including persistently high sea freight rates and the continuing negative effects of Typhoon Yagi on domestic production. — VNS