Vietnam’s extractive industry recorded a 1.5 percent increase in December 2024 compared to November 2024, according to Vietnam’s Industrial Production Index.
Year-on-year, the industry saw a 3.7 percent decline in December 2024 compared to December 2023. Over the entirety of 2024, the extractive sector experienced a cumulative contraction of 6.5 percent compared to 2023, indicating a challenging year for the industry.
While the slight month-on-month growth in December reflects stabilisation, the overall decline highlights ongoing difficulties, including ageing resource fields and the global shift towards renewable energy impacting demand for traditional extractive activities.
The extractive industry, while a critical contributor to Vietnam’s industrial output, faces increasing pressure to adapt to economic and environmental changes, underscoring the need for diversification and technological investment.
The December uptick offers a glimmer of hope amid a generally declining trend for 2024.
Of note, Vietnam’s extractive industry is only a relatively minor contributor to the national economy, encompassing the exploration and production of key natural resources such as oil, gas, coal, and minerals. That said, the sector plays an important role in meeting domestic energy demands and generating export revenues.
Despite its economic contributions, however, the extractive industry in Vietnam faces challenges related to resource depletion, environmental impact, and the need for modernisation. Efforts are being made to enhance efficiency, adopt sustainable practices, and diversify the energy mix to include more renewable resources but this latest data suggests there is still a way to go.
See also: Mining in Vietnam: Industry Overview