The Industrial Production Index (IPI) for Vietnam’s extractive sector rose by 1.72 percent in November compared to October, reflecting slight month-on-month growth, according to Vietnam’s General Statistics Office. This uptick signals some recovery in the sector’s performance during the short term.
Year-on-year, however, the extractive sector showed a significant decline of 9.85 percent in November 2024 compared to the same month in 2023. For the first 11 months of 2024, the IPI decreased by 7.31 percent compared to the same period the previous year, highlighting ongoing challenges faced by the industry.
The data underscores several structural issues within Vietnam’s extractive sector, including diminishing natural reserves, fluctuating global commodity prices, and higher production costs. Despite monthly improvements, the industry struggles to maintain consistent output, pushing the need for modernisation and diversification.
As Vietnam’s economy evolves, the extractive sector’s role is shifting towards sustainability and value-added processing. While the industry remains crucial to the economy, these changes aim to align it with the country’s long-term development goals.
See also: Mining in Vietnam: Industry Overview