Consumption index of the entire processing and manufacturing industry increased by 10.8%

Production activities at Duy Tan recycled plastic factory. Photo: provided by enterprise

Report on the situation of industrial production and commercial activities in the first 6 months of 2024 of the Ministry of Industry and Trade shows that, following the recovery momentum from the end of 2023 and the first months of 2024, industrial production continues to show improvement and made a positive contribution to the overall growth results of the whole economy.

The added value of the entire industrial sector in the past 6 months is estimated to increase by 7.54% over the same period last year (1st quarter increased by 6.47%; 2nd quarter increased by 8.55%); Of which, the processing and manufacturing industry increased by 8.67% (1st quarter increased by 7.21%; 2nd quarter increased by 10.04%), contributing 2.14 percentage points to the increase in total added value added of the whole economy.

Vietnam's manufacturing purchasing managers index (PMI) increased sharply to 54.7 points in June, compared to 50.3 points in May, showing that the health of the manufacturing industry has improved for the three consecutive months, simultaneously showing that business conditions have strengthened significantly. Growth in manufacturing accelerated strongly at the end of the second quarter.

Therefore, the index of industrial production (IIP) in June 2024, although estimated to increase slightly compared to the previous month (estimated to increase by 0.7%), but compared to the same period last year, increased by 10.9%. Of which, the processing and manufacturing industry is estimated to increase by 12.6%; Electricity production and distribution increased by 13.7%; Water supply industry, waste and wastewater management and treatment activities increased by 8%; The mining industry alone decreased by 7.7%.

In the first 6 months of 2024, the entire industrial production index increased by 7.7% over the same period last year. Of which, the processing and manufacturing industry is estimated to increase by 8.5%; electricity production and distribution increased by 13%; Water supply industry, waste and wastewater management and treatment activities increased by 6.3%; The mining industry alone decreased by 5.5%.

Notably, industrial production grew on a large scale with 56/63 localities having an increase in industrial production index compared to the same period last year, only 7 localities had a decrease in IIP compared to the same period last year. Among them, there are 25 localities with high double-digit growth such as: Khanh Hoa increased by 46.4%; Bac Giang increased by 26.5%; Hai Phong increased by 15.2%; Quang Ninh increased by 13.3%, etc.

The production index in the first 6 months of 2024 of a number of key level II industries increased compared to the same period last year, such as: production of rubber and plastic products increased by 29.0%; Production of beds, wardrobes, tables and chairs increased by 19.8%; Chemical and chemical product production increased by 18.5%; Electrical equipment production increased by 17.8%; Mining and ore mining support service activities increased by 17.4%; Metal ore exploitation increased by 16.7%. Production of prefabricated metal products (except machinery and equipment) increased by 13.1%; Production and distribution of electricity, gas, hot water, steam and air conditioning increased by 13.0%; Production of electronic products, computers and optical products increased by 8.6%; Food processing production increased by 6.5%.

On the contrary, the IIP index of some industries decreased: crude oil and natural gas exploitation decreased by 11.7%; repair, maintenance and installation of machinery and equipment decreased by 9.2%; Other means of transport production decreased by 3.0%; Production of products from other non-metallic minerals decreased by 1.7%.

According to the Ministry of Industry and Trade, a number of key industrial products in the first 6 months of 2024 increased compared to the same period last year: bar steel and angle steel increased by 34.5%; textiles made from natural fibers increased by 18.4%; rolled steel increased by 17.3%; NPK mixed fertilizer increased by 13.7%; Electricity production increased by 12.2%.

On the contrary, some products decreased compared to the same period last year: liquefied gas LPG decreased by 18.5%; Gaseous natural gas decreased by 16.0%; television decreased by 9.6%; Crude oil exploitation decreased by 6.6%; draft beer, crude iron and steel and smartphones all decreased by 4.1%; aluminum decreased by 3.9%; automobiles decreased by 3.2%.

Notably, in the first 6 months of 2024, the consumption index of the entire processing and manufacturing industry increased by 10.8% compared to the same period in 2023 (same period last year decreased by 2.2%). The average inventory rate in the entire processing and manufacturing industry in the first 6 months of 2024 is 76.9% (the average in the first six months of 2023 was 83.1%).

The Ministry of Industry and Trade assessed that in the first 6 months of 2024, the consumption index of the entire processing and manufacturing industry was much higher than the same period last year, while the inventory index decreased, which is a positive sign for the recovery in industrial production.

At the same time, the number of workers working in industrial enterprises as of June 1, 2024 increased by 1.1% compared to the same time last month and increased by 3.8% compared to the same time last year, showing that the number of new orders increases, manufacturing enterprises need to increase output and increase the number of employees.