Industrial output maintained strong momentum in May, with the Index of Industrial Production (IIP) rising 4.3 percent month-on-month and 9.4 percent year-on-year, according to the latest data from the National Statistics Office.
Key data
- Over the first five months of 2025, the IIP grew 8.8 percent compared to the same period last year.
- 61 provinces recorded IIP growth, while only Ba Ria – Vung Tau (-3.4%) and Cao Bang (-3.3%) saw declines.
- As of May 1, 2025, employment in industrial enterprises rose 1.1 percent month-on-month and 4.5 percent year-on-year.
The Index of Industrial Production (IIP) is a key economic indicator that measures changes in the output of Vietnam’s industrial sector, including mining, manufacturing, electricity, and water supply.
It provides insight into the volume of goods and services produced by industrial enterprises over time, helping to assess the pace of economic activity in the sector.
In Vietnam, the IIP is compiled monthly by the National Statistics Office and is widely used as a short-term gauge of industrial health.
It reflects real production trends rather than monetary value, making it particularly useful for tracking physical output and identifying shifts in supply and demand.
The manufacturing sub-sector, which is central to Vietnam’s export-driven economy, often has the largest influence on the IIP.
The IIP is closely monitored by policymakers, investors, and economists, as it offers early signals about broader economic trends.
For a country like Vietnam, where industrial growth plays a major role in GDP performance, changes in the IIP can indicate potential turning points in the business cycle or highlight sector-specific developments that warrant further attention.
See also: Manufacturing in Vietnam 2025: Growth, Options & Other Key Considerations