Vietnam’s industrial production maintained strong growth in the first two months of 2026 despite fewer working days due to the Lunar New Year (Tet) holiday, with the processing and manufacturing sector continuing to serve as the key growth driver.

Industrial production surges in the first two months of 2026.

According to the National Statistics Office (NSO) under the Ministry of Finance, the index of industrial production (IIP) in February was estimated to decrease 18.4% from the previous month but increase 1% year on year.

Overall, in the January–February period, the IIP rose 10.4% compared with the same period last year.

In February, production in the processing and manufacturing sector grew 2.3% year on year. Meanwhile, mining declined 5.3%, water supply and waste management fell 5.6%, and electricity production and distribution dropped 4.5%.

For the first two months of 2026, the processing and manufacturing sector expanded 11.5%, contributing 8.9 percentage points to the overall IIP growth.

Electricity production and distribution increased 6.3%, contributing 0.6 percentage points, while water supply and waste management rose 2.1%. Mining grew 5.4%, reversing a decline recorded in the same period last year.

Several key industrial sub-sectors recorded strong growth compared with the same period last year. Production of other non-metallic mineral products increased 33.1%, metal production rose 27.9%, beverages grew 20.9%, paper and paper products expanded 20.4%, motor vehicles increased 20.3%, chemical products rose 20.1%, and wood processing grew 13.4%.

In contrast, some sectors recorded declines, including the mining of hard coal and lignite, down 3.4%, and the production of other transport equipment, which fell 2.7%.

Industrial production expanded in all 34 provinces and centrally-run cities nationwide during the January–February period, largely driven by growth in processing and manufacturing as well as electricity production and distribution.

A number of major industrial products posted significant increases year on year, including cement, up 30.5%; chemical paint, 27.5%; steel bars and angle steel, 25.7%; processed seafood, 24.8%; automobiles, 24%; motorbikes, 22.5%; beer, 18.1%; and phone components, 15.4%.

Meanwhile, urea fertiliser output declined 16.7% and clean coal production fell 6.1%.

Regarding industrial employment, the number of workers in industrial enterprises as of February 1 increased 0.2% compared with the previous month and 4% year on year.

The employment in foreign-invested enterprises rose 5.9% year on year, while state-owned enterprises saw a 3% decline.

According to the NSO, localities should continue restructuring the industrial sector toward modernisation, improving productivity, product quality and value-added while enhancing competitiveness.

Priority should also be given to developing and mastering new technologies and emerging industries such as chips, semiconductors, artificial intelligence and green technologies, while strengthening supporting industries and linkages between foreign-invested and domestic enterprises.

Nguyen Thi Huong, Director of the NSO, said the industrial sector has shown clearer positive signs and a relatively solid recovery momentum.

However, structural and market challenges remain, requiring coordinated solutions to sustain recovery and improve the quality of industrial growth in the coming period.

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