The country's Index of Industrial Production (IIP) saw a year-on-year increase of 5.6 per cent in the first 11 months of this year, according to the General Statistics Office (GSO).— Photo soha

HA NOI (Biz Hub)— The country's Index of Industrial Production (IIP) saw a year-on-year increase of 5.6 per cent in the first 11 months of this year, according to the General Statistics Office (GSO).

The surge, the highest level so far this year, was driven by an expansion in one industrial sector, industrial manufacturing and processing, which had a yearly rise of 7.1 per cent in the period, GSO said, adding that this rate was much higher than 5.4 per cent seen in same period one year ago.

During the January-November period, industrial manufacturing and processing also contributed 5 per cent to the country's IIP increase while electricity production and distribution contributed 0.6 per cent.

Central Quang Ngai Province recorded the highest IIP growth at 18.5 per cent. It was followed by northern Vinh Phuc Province at 14 per cent and two southern provinces of Dong Nai and Binh Duong at 7.6 per cent and 7.4 per cent, respectively.

While the two economic hubs, HCM City and Ha Noi, posted only modest increases of 6 per cent and 4.4 per cent, respectively.

Among industries witnessed consumption growth including automobile assembly (up 37 per cent), leather and leather-made products (up 31 per cent) and rubber and plastic (up 18 per cent).

In addition, the inventory index of the manufacturing and processing industry as a whole rose 9.4 per cent from the same period last year – as of November 1 – with some sectors recording higher inventories including beverages (up 121 per cent), pharmaceuticals (up 80.2 per cent), paper production (up 33.2 per cent), and chemical products (up 25.5 per cent).

Experts said that an inventory index set below 10 per cent was an optimistic sign for the economy at this time, especially in relation to the previous year.

The Ministry of Industry and Trade forecast that overall inventory would decline in the remaining months of this year as demand usually went up in this period because businesses shipped goods out to fulfill orders, particularly in the footwear and apparel sectors.

Boosting industrial production was considered a key factor in developing the national economy as emphasized in the 2011-20 Socio-Economic Development Strategy, the 2011-15 Socio-Economic Plan and Socio-Economic Planning for 2013. — VNS