Vietnam’s industrial sector maintained strong momentum in May, with production continuing to accelerate across manufacturing, mining and utilities despite an increasingly uncertain global trade environment, according to the latest data from the National Statistics Office (NSO).
The NSO estimates the Industrial Production Index (IIP) rose 3.3 percent month-on-month and 8.8 percent year-on-year in May. For the first five months of 2026, industrial production increased 9.1 percent compared to the same period last year, marking the strongest growth rate for the January-May period in four years.
Manufacturing remained the primary driver of growth. The sector expanded 9.5 percent in the first five months of the year, contributing 7.4 percentage points to overall industrial production growth. Mining rebounded with a 5.5 percent increase after contracting during the same period in 2025, while electricity generation and distribution rose 7.6 percent.
Growth was broad-based across much of Vietnam’s industrial economy. Metal production surged 20.2 percent, motor vehicle manufacturing rose 18 percent, chemical products increased 16.9 percent, and non-metallic mineral products climbed 16.2 percent. Food processing, textiles and electronics also recorded solid gains.
Several key industrial products posted particularly strong results. Motorcycle production jumped 36 percent year-on-year during the first five months of 2026, while automobile production increased 26.7 percent. Processed seafood output rose 21.6 percent and rolled steel production expanded 21.5 percent.
The improvement was geographically widespread. Industrial production increased in all 34 provinces and centrally administered cities during the first five months of the year, reflecting both stronger manufacturing activity and higher electricity production across the country.
The labour market also showed signs of strengthening demand. Employment at industrial enterprises increased 3.4 percent year-on-year as of May 1, with foreign-invested manufacturers recording the strongest workforce growth. Manufacturing employment rose 3.5 percent from a year earlier.
Not all sectors participated equally in the expansion. Hard coal and lignite mining contracted 4.6 percent, while production of other transport equipment slipped 1 percent. Output of NPK fertiliser, monosodium glutamate, leather footwear and coal products also declined.