July industrial production hit hard by pandemic

Industrial activities have continued bearing the brunt of the COVID-19 pandemic, resulting in mere growth rates of 1.8 percent month on month and 2.2 percent year on year in the July index of industrial production (IIP) - the slowest pace in seven months.

In July, the mining industry contracted 8 percent from a year earlier while processing and manufacturing expanded 2.9 percent; electricity production and distribution up 6.7 percent; water supply, waste and wastewater management and treatment up 4.4 percent, the Ministry of Industry and Trade reported.

Many sectors witnessed declines in their production indexes during the first seven months of 2021, including crude oil and natural gas exploitation down 10.4 percent; hard and lignite coal mining 2.9 percent; and machinery and equipment repair, maintenance, and installation 1.1 percent.

Among the localities imposing social distancing under the Prime Minister’s Directive 16/CT-TTg to curb COVID-19 transmission, seven in the South recorded lower IIPs in July compared to the same period last year: Ho Chi Minh City (down 19.4 percent), Long An (down 14.6 percent), Ca Mau (down 13.7 percent), Dong Thap (down 5.7 percent), Tra Vinh (down 5.3 percent), Ba Ria - Vung Tau (down 1.9 percent), and Ben Tre (down 0.2 percent).

However, thanks to drastic moves to keep supply chains uninterrupted and stay safe from the pandemic, many still enjoyed slight growth in industrial production such as Bac Ninh, Bac Giang, and Hanoi in the northern region, according to the ministry.