Vietnam’s manufacturing growth accelerates in first half of 2026
Vietnam’s Index of Industrial Production rose 11.2% year-on-year in Q2 2026, the fastest first-half expansion since 2019, driven by an 11.3% rise in manufacturing, the National Statistics Office (NSO) said.
Source: RSS · July 31, 2026 at 3:02 AM · AI-assisted report
KUALA LUMPUR, 31 JULY 2026 —
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Vietnam’s Index of Industrial Production rose 11.2% year-on-year in Q2 2026, the fastest first-half expansion since 2019, driven by an 11.3% rise in manufacturing, the National Statistics Office (NSO) said.
Market Impact
The six-month IIP climbed 10.8% compared with a year earlier, beating the 8.7% pace in the same period of 2025, the NSO reported on July 3. Manufacturing contributed 8.9 percentage points to overall industrial growth, with output up 11.4%. Electricity production and distribution increased 9.6%, while mining reversed a prior decline to rise 5.8%.
A broad rebound in domestic consumption, exports and investment underpinned the recovery, said NSO Director Nguyen Thi Huong. Subsectors such as basic metals (21.5%), motor vehicles (17.7%) and beverages (15.4%) outperformed, while leather products grew only 4% and hard coal mining fell 5.7%.
Industrial output rose in all 34 provinces and cities, led by manufacturing and electricity. Quang Ninh recorded the strongest manufacturing surge at 37.8%, followed by Ha Tinh (30.7%) and Ninh Binh (27.7%). Electricity production jumped 48.3% in Ha Tinh, 18.3% in Phu Tho and 15.6% in Dien Bien.
Major industrial products posted double-digit gains, including motorcycles (32.9%), automobiles (26.9%), rolled steel (23.3%) and processed seafood (21.6%). The manufacturing consumption index rose 10.8% in the first half, while the average inventory ratio fell to 82.2% from 85.7% a year earlier.
Employment in industrial enterprises increased 3.1% year-on-year, including a 3.2% rise in manufacturing, signalling business confidence in further expansion. The IIP’s six-month gain of 10.8% surpassed the 8.7% recorded in the same period of 2025 and marked the highest first-half growth since 2019.
The data underscores manufacturing’s continuing role as Vietnam’s main growth engine amid a challenging global environment, according to Nguyen Thi Huong.