Vietnam’s Industrial Production Index (IIP) rose 1.5% month-on-month and 14.4% year-on-year in August.

For the first eight months of the year, the IIP increased 11.9% year-on-year, marking the strongest eight-month growth rate in many years.

The eight-month IIP growth rates during 2019-2026 were 9.5%, 2.2%, 5.5%, 9.2%, -0.2%, 8.4%, 8.5% and 11.9%, respectively.

Manufacturing continued to lead the industrial recovery.

The manufacturing and processing sector's IIP surged 14.6% year-on-year in August and 12.5% in the first eight months, accelerating from 10% growth during the same period in 2025. The sector contributed 9.6 percentage points to overall IIP growth.

Mining output increased 8.1% in the first eight months, reversing a 2.1% decline a year earlier and contributing 1.3 percentage points to overall growth.

Electricity generation and distribution hiked 10.1%, compared with 5% growth in the same period last year, making up 0.9 percentage point.

Water supply, waste management, and wastewater treatment increased 9.4%, slightly faster than the 8.8% growth recorded a year earlier, contributing 0.1 percentage point.

Industrial output increased across all 34 provinces and cities during the January-August period.

The central province of Ha Tinh posted the strongest growth, with IIP surging 38.9%, followed by the northern province of Ninh Binh at 25.7%, the northern province of Thai Nguyen at 22.2%, the northern province of Phu Tho at 21.7%, and the central province of Nghe An at 20.2%.

Meanwhile, the northern province of Lai Chau recorded the slowest growth at 4.4%, followed by neighboring Lao Cai province at 6.5%, Lang Son at 7.6%, and central provinces of Khanh Hoa and Gia Lai at 7.8% each.

Hanoi and the central city of Danang were also among the localities with relatively slower industrial growth, with IIP rising 8.9% and 9.7%, respectively.

The National Statistics Office said strong industrial growth in several localities was largely driven by their manufacturing sectors.

In Ha Tinh, manufacturing and processing output jumped 38% in the eight-month period. The corresponding growth rates were 31.8% in Quang Ninh, 26.1% in Ninh Binh, 25.7% in Nghe An, 22.6% in Thai Nguyen, and 22.1% in Phu Tho.

Conversely, slower IIP growth in some localities reflected weaker performance in manufacturing, mining or electricity production.

In particular, manufacturing output in Lang Son and Lao Cai increased just 2.1% and 4.9%, respectively, weighing on their overall industrial growth.

The strong IIP figures broadly align with the latest S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI).

Vietnam's manufacturing PMI rose to 53.3 in August, from 52.9 in July, remaining above the 50-point threshold for the 14th consecutive month, according to data released on Thursday.

S&P Global said manufacturing growth strengthened in the middle of the third quarter, with both output and new orders increasing strongly. The improvement was supported by new product development and stronger customer demand.