An employee of Tien Phong Plastic Co at work. Industrial production is rallying after recent slump. — VNA/VNS Photo Hoang Hung

HA NOI (Biz Hub) — The industrial production index (IIP) increased 6.7 per cent year-on-year in May, placing total growth for the first five months at 5.2 per cent.

This represented an improvement over the first quarter, but still dragged behind last year's growth, according to the General Statistics Office.

Still, the office's economic specialist Vu Quang Ha said that the move showed industrial production was rallying after its recent slump.

Manufacturing and processing, which accounted for over 70 per cent of all industrial production, expanded 5.5 per cent in the first five months. But last year, they grew 6.3 per cent.

Some products in these areas saw significant growth, such as casted metals (up 15.3 per cent), leather (up 14.7 per cent), paper and paper products (up 12.7 per cent) and beverages (up 11.8 per cent).

But several major products did not grow and some even declined. Textile fabric rose only 5.5 per cent, crude oil increased a scant 3.3 per cent and raw iron and steel were down 7 per cent.

The consumption index increased 5.7 per cent year-on-year as of May, while the inventory index, though gradually declining, remained high at 12.3 per cent.

The inventory index went up significantly for many major products, such as computers and electronics and optical goods (up 46.8 per cent), electric devices (up 26.3 per cent) and furniture (up 32.2 per cent).

According to statistics office experts, the index was not showing signs of easing, with inventories of produced goods at 74 per cent in April and nearly 77 per cent in the first four months. The secure level is regarded as 65 per cent. — VNS