Vietnam’s Index of Industrial Production (IIP) rose 11.9% year-on-year in the first eight months of 2026, the highest growth rate for the period in many years, reported the National Statistics Office (NSO) under the Ministry of Finance.

Workers at Hung Ha Veston Factory under May 10 Corporation in Hung Ha commune, Hung Yen province.

In August, the IIP increased 1.5% month-on-month and 14.4% year-on-year.

Manufacturing and processing remained the main growth driver, expanding 12.5% during January-August, compared with 10% in the same period last year, and contributing 9.6 percentage points to the overall industrial growth.

The mining sector also staged a strong recovery, growing 8.1% after contracting 2.1% a year earlier and contributing 1.3 percentage points.

Electricity production and distribution rose 10.1%, double the 5% growth recorded in the same period of 2025, while water supply, sewerage, waste management and remediation activities increased 9.4%.

Several major industrial sectors posted strong growth. Metal production surged 22.4%, followed by beverage production at 16.4%, motor vehicle manufacturing at 15.9% and electrical equipment manufacturing at 14.6%.

The manufacture of electronic products, computers and optical products rose 13.9%, while furniture and non-metallic mineral products increased 12.7% and 12.6%, respectively. Rubber and plastic products grew 12.3%, wood processing 12.2%, and chemicals and chemical products 11.9%.

In contrast, leather and related products rose only 3.6%, while hard coal and lignite mining fell 1.8%.

Industrial production increased in all 34 centrally-governed cities and provinces during the eight-month period, with several localities recording high growth driven by manufacturing and processing or electricity production and distribution.

Among key industrial products, motorcycle output jumped 27.9% year-on-year, followed by laptops at 25.7%, automobiles at 24% and rolled steel at 23.4%. Processed seafood, refined sugar, steel bars and angles, beer and chemical paints also posted double-digit growth.

However, output of NPK compound fertiliser fell 8.6%, monosodium glutamate 8.1%, leather footwear 4.2% and liquefied petroleum gas 3.2%.

The industrial production performance was consistent with the latest Purchasing Managers’ Index (PMI) released by S&P Global. Vietnam’s manufacturing PMI rose to 53.3 points in August from 52.9 in July, remaining above the 50-point threshold for the 14th consecutive month.

S&P Global said the manufacturing sector continued to strengthen in mid-Q3, with output and new orders increasing strongly amid new product development and improved customer demand.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said growth in output and new orders had not only regained the strong pace seen at the beginning of the year but accelerated further in August.

Employment in industrial enterprises also improved. As of August 1, the number of workers rose 1% from the previous month and 3.8% year-on-year.

Manufacturing and processing employment increased 1% month-on-month and 4% year-on-year, while mining employment declined 0.1% and 0.7%, respectively.

Employment in electricity, gas, hot water, steam and air-conditioning production and distribution was unchanged month-on-month but rose 1.9% year-on-year.

Employment in water supply, waste and wastewater management increased 0.1% from the previous month and 5% year-on-year.

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