The index of industrial production (IIP) for July rose by 7 per cent year.—Photo cpv

HA NOI (Biz Hub)— The index of industrial production (IIP) for July rose by 7 per cent year on year, according to the General Statistics Office (GSO).

In July, mining and manufacturing production increased by 6.8 per cent, while the power sector grew 9.2 per cent compared to the previous year. Water supply and waste treatment saw a smaller rise of 1.6 per cent.

Based on July's figures, total industrial output in the first seven months of 2013 climbed by 5.2 per cent over the same period last year, the GSO reported.

During the January-July period, leather products made the biggest annual gain, jumping by 17.3 per cent, followed by motor vehicles and paper, which grew 14.3 per cent and 11.6 per cent, respectively.

The IIP for most cities and provinces nationwide increased during this period, of which the northern province of Vinh Phuc recorded the highest growth of 24.4 per cent, followed by the central city of Da Nang at 10.5 per cent. HCM City rose by 4.2 per cent and Ha Noi by 5.3.

Earlier this month, the Ministry of Industry and Trade forecast that rising orders and signs of recovery in the property sector would drive industrial growth in the final months of the year.

The GSO also reported that the inventory index for the manufacturing industry by July 1 had increased by 8.8 per cent against the same period last year, adding that the rise was significantly smaller when compared with the 19 per cent rate in January. However, it noted that further increases were not sustainable, partly because manufacturers had reduced production due to low consumer demand.

Large stockpiles were still leading to cut backs in production levels in beverages, cigarettes and the pharmaceuticals industry, however garments, leather, vehicle engines and electronics-computers all saw inventories fall. — VNS