Q1 2026: Metal production shows the strongest growth among industries

Industrial production in Vietnam rose in the first quarter of 2026, with metal production recording the strongest year-over-year growth among major industry groups, according to the General Statistics Office (GSO).

Q1 2026 industrial production: broad-based increase

In Q1 2026, the industrial production index (IIP) increased 9.0% year over year (Q1 2025: +8.3%). The processing and manufacturing sector rose 9.7%, contributing 7.6 percentage points to the overall increase. The water supply, waste management and disposal, and wastewater treatment sector grew 7.8%, contributing 0.1 percentage point. Production and distribution of electricity increased 6.3%, contributing 0.6 percentage point, while mining rose 4.7%, contributing 0.7 percentage point.

Fastest-growing industries

Several II-digit industrial groups expanded at double-digit rates in Q1 2026 year over year:

• Metal production: +22.9%
• Products from non-metallic minerals: +19.7%
• Chemical production and chemical products: +18.2%
• Motor vehicle production: +14.7%
• Beverage production: +14.5%
• Bed, cabinet, table, chair production: +13.9%
• Food processing production: +12.0%
• Textile: +8.6%
• Apparel manufacturing: +8.4%
• Paper and paper products; electronics, computers and optics products: +8.3%
• Wood processing and wood products; straw and fiber-based products (excluding beds, cabinets, tables and chairs): +7.3%

Some industries grew more slowly or declined. Metal casting (except machinery and equipment) rose 3.1%, while hard coal and lignite mining fell 4.8%. Production of other transport equipment also declined, down 0.9%.

Regional performance across provinces

Industrial production across all 34 provinces increased in Q1 2026. Several localities reported stronger gains supported by the processing and manufacturing sector and by electricity production and distribution. Other localities saw slower growth due to weaker performance in processing/manufacturing or in mining and electricity production/distribution.

Selected industrial products: gains and declines

Among key industrial products, year-over-year increases in Q1 2026 included:

• Motorcycles: +31.6%
• Processed seafood: +23.4%
• Steel bars and angles: +21.1%
• Rolled steel: +20.3%
• Chemical paints: +19.2%
• Automobiles: +18.5%
• Infant formula: +14.5%
• Iron ore: +14.3%

In contrast, some products declined year over year:

• Urea fertilizer: -9.6%
• Mobile phones: -6.6%
• Mixed fertilizer NPK: -5.4%
• Coal (hard coal): -4.9%
• Natural fiber fabrics: -3.5%

Consumption, inventories and employment

Industrial consumption in March 2026 for the processing and manufacturing sector rose 14.7% month over month and 1.7% year over year. For Q1 2026 as a whole, the processing and manufacturing consumption index increased 9.5% year over year (Q1 2025: +5.4%).

Inventories across the processing and manufacturing sector as of 31/3/2026 rose 8.5% year over year, while the inventory index was also up 12.9% year over year. The average inventory ratio for Q1 2026 was 84.8% (Q1 2025: 90.0%).

Employment in industrial enterprises as of 01/3/2026 increased 1.1% month over month and 2.4% year over year. By ownership, employees in state-owned enterprises rose 0.2% and fell 0.2%, while the private sector increased 1.1% and fell 0.4%. Foreign-invested enterprises rose 1.2% month over month and 3.4% year over year.

By activity, mining employment was unchanged month over month and up 1.2% year over year. Processing and manufacturing employment rose 1.1% month over month and 2.4% year over year. Employment in production and distribution of electricity, gas, and hot water, steam and air conditioning increased 0.4% month over month and 3.3% year over year, while water supply, waste management and disposal rose 0.1% month over month and 2.6% year over year.