Vietnam’s industrial sector maintained strong momentum in the first quarter of 2026, with the Industrial Production Index rising 9.0 percent year on year, marking the fastest first-quarter expansion since 2020, according to the latest release from the National Statistics Office.
Manufacturing remained the core driver, expanding 9.7 percent and contributing the bulk of overall industrial growth, supported by gains across metals, chemicals, and vehicle production.
Heavy industry recorded some of the strongest increases, with metal production up 22.9 percent, non-metallic mineral products rising 19.7 percent, and chemicals up 18.2 percent, indicating continued capacity expansion and strong input demand.
Consumer-linked manufacturing also posted solid gains, including motor vehicles up 14.7 percent, beverages 14.5 percent, and food processing 12.0 percent, reflecting both domestic demand and export activity.
By contrast, some sectors lagged or contracted, with coal mining down 4.8 percent and other transport equipment declining 0.9 percent, highlighting uneven performance across industrial segments.
Monthly data showed a sharp rebound in March, with industrial output rising 18.8 percent from February and 6.9 percent year on year, led by water and waste management, manufacturing, and electricity production.
Product-level data underscored broad-based output gains, with motorcycles up 31.6 percent, processed seafood 23.4 percent, and steel products more than 20 percent, while declines were recorded in fertilisers, mobile phones, and coal.
Industrial consumption strengthened alongside output, with the manufacturing consumption index rising 9.5 percent year on year in the quarter, compared to 5.4 percent in the same period last year.
Inventory levels increased but remained lower relative to last year, with the inventory ratio at 84.8 percent compared to 90.0 percent, suggesting improved stock management despite rising production.
Employment trends remained positive, with industrial workforce numbers rising 2.4 percent year on year, driven primarily by foreign-invested and manufacturing enterprises.