Vietnam’s iron ore mining sector contracted by 12.8 percent in December 2024 compared to November 2024, according to Vietnam’s Industrial Production Index.
Year-on-year, the sector experienced robust growth of 23.5 percent in December 2024 compared to December 2023. However, for the entire year of 2024, iron ore mining recorded an 11.2 percent decline compared to 2023, indicating significant challenges over the longer term.
The substantial monthly decline in December reflects a seasonal slowdown or operational challenges, while the strong year-on-year growth suggests a recovery from lower production levels in December 2023. Nevertheless, the annual contraction underscores persistent issues, such as declining ore quality, ageing infrastructure, and market volatility.
Iron ore mining is a vital contributor to Vietnam’s industrial economy, supplying raw materials for domestic steel production and exports. Despite its importance, the sector faces increasing competition from imported materials and environmental regulations affecting mining activities.
While the year-on-year growth offers optimism, addressing structural challenges is critical for sustaining the sector’s long-term viability.
See also: Mining in Vietnam: Industry Overview