According to the July and 7-month 2023 socio-economic report released by the General Statistics Office, industrial production in July showed a marked improvement over the previous month, with the estimated Industrial Production Index (IIP) increasing by 3.9% compared to the previous month and 3.7% compared to the same period last year.
However, the global economic situation faced numerous challenges in the first months of 2023, which had an impact on the performance of domestic industrial production. Overall, during the seven months of 2023, IIP is estimated to have decreased by 0.7% compared to the same period last year.
In July 2023, the IIP showed improvement, with an estimated increase of 3.9% from the previous month and a year-on-year growth of 3.7%. Within this period, the processing and manufacturing industry increased by 3.6%, the mining industry increased by 4%, electricity production and distribution industry increased by 4.1%, and water supply, sewerage, waste management, and remediation activities increased by 8.3%.
Cumulatively, in the seven months of 2023, the IIP declined by 0.7% compared to the same period last year (whereas during the same period in 2022, it had increased by 8.6%). Specifically, the processing and manufacturing industry decreased by 1%, contributing to a 0.7 percentage point reduction in the overall increase. The electricity production and distribution industry increased by 1.4%, contributing 0.1 percentage points; water supply, sewerage, waste management, and remediation activities increased by 6.3%, also contributing 0.1 percentage points; while the mining industry decreased by 1.2%, reducing 0.2 percentage points.
Notably, some grade II key industries experienced significant growth in their 7-month production index in 2023 compared to the same period last year. Coke production and refined petroleum products increased by 12.2%; metal ore mining increased by 8.6%; tobacco product production increased by 8.6%; production of rubber and plastic products increased by 7.6%; waste collection, treatment, and destruction activities; and scrap recycling increased by 7.3%; production of prefabricated metal products (except for machinery and equipment) increased by 6.4%.
On the other hand, certain industries witnessed a decline in their IIP. Wood manufacturing and production of products from wood, bamboo, and cork decreased by 6.9%; paper and paper products decreased by 6.8%; production of motor vehicles decreased by 6.2%; costume production decreased by 5.5%; production of electronic products, computers, and optical products, and production of other non-metallic minerals decreased by 4.3%.
Across the country, the IIP in the seven months of 2023 compared to the same period last year increased in 49 localities and decreased in 14 localities. Some regions experienced a relatively high increase in IIP due to growth in the processing and manufacturing industry and electricity production and distribution industry. Conversely, certain areas observed a decrease in IIP due to declines in the processing and manufacturing industries, as well as the mining and electricity production and distribution industries.