August industrial production is rapidly recovering

DNHN - The production index of the number of key grade II industries increased sharply in the first eight months of 2022 when compared to the same period last year.

The index of industrial production (IIP) was expected to rise 2.9% in August over the previous month and 15.6% over the same period last year. In comparison to the same period the previous year, the processing and manufacturing industries expanded by 16.2%; power generation and distribution climbed by 14.8%; water supply, waste management, and wastewater treatment increased by 11%; and mining increased by 10.2%.

IIP is expected to expand by 9.4% in the first eight months of 2022 compared to the same time last year (it will increase by 5.5% in the same period in 2021). The processing and manufacturing industries increased by 10.4% (7% in the same period in 2021), contributing 8.1 percentage points to overall growth; electricity production and distribution increased by 6.8%, contributing 0.6 percentage points; water supply industry, waste and wastewater management and treatment activities increased by 5.8%, contributing 0.1 percentage points; and the mining industry increased by 4.2%, contributing 0.6 percentage points.

The production index of several significant sectors of grade II grew dramatically in the first eight months of 2022 compared to the same time last year: Beverage production increased by 26.8%; apparel production increased by 22.5%; leather and related product production increased by 18.5%; electrical equipment production and drug, pharmaceutical chemical, and medicinal herb production increased by 17.4%; machinery and equipment not classified elsewhere increased by 14.3%; wood processing and production of wood, bamboo, and cork products increased by 14.2%; and production of electronic products, computers, and peripherals increased by 14.2%. Some industries' IIP indexes fell in the opposite direction: Rubber and plastic product output fell by 6.3%, metal production fell by 0.8%, and crude oil and natural gas extraction fell by 0.7%.

In the first eight months of 2022, the industrial production index grew in 61 places and declined in 02 localities across the country, compared to the same time the previous year. The processing and manufacturing sectors, as well as the energy generation and distribution industries, rose in several IIP index areas. On the other hand, although production and commercial operations continue to face significant challenges as a result of the Covid-19 outbreak, the processing and manufacturing industries have yet to restore their impetus. High growth, similar to the period preceding the pandemic; mining and power generation and distribution industries rose or diminished.

Some significant industrial items rose dramatically in the first eight months of 2022 compared to the same period previous year: Beer grew by 31.2%; processed seafood grew by 20.7%; phone components grew by 19.6%; autos grew by 13.9%; casual clothes grew by 12.7%; leather shoes and sandals grew by 12.5%, and tobacco grew by 9.6%. The number of items declined in the opposite direction as compared to the same time previous year: Iron and crude steel fell by 12.3%; television fell by 10.7%; mixed fertilizer NPK fell by 6%; fabrics made from man-made fibres fell by 5.8%; mobile phones fell by 5.4%; aquatic feed fell by 4.9%; liquefied petroleum gas (LPG) fell by 2.4%; crude oil exploitation fell by 1%; and when burning natural gas, it fell by 0.5%.

As of August 1, 2022, the number of workers working in industrial firms rose by 0.6% over the previous month and by 23.2% over the previous year. State-owned firms declined by 6.1%; non-state enterprises rose by 0.7% and 20.1%; and foreign-invested enterprises increased by 1.5% and 27.1%.

P.V