Industrial production in the second quarter of 2021 grew quite well because business activities of enterprises were maintained and gradually recovered, the growth rate of added value reached 11.45% over the same period last year[1]. Generally, in the first 6 months of 2021, the added value of the industry increased by 8.91%, of which the processing and manufacturing industry increased by 11.42%, higher than the growth rate of 5.06% of the same period in 2020.
The added value of the whole industry in the first 6 months of 2021 was estimated to increase by 8.91% over the same period last year (increased by 6.29% in QI/2021 and increased by 11.45% in QII/2021). Of which, the manufacturing industry increased by 11.42% (increased by 8.9% in the first quarter; increased by 13.84% in the second quarter), contributing 2.9 percentage points to the increase in the total added value of the whole economy; electricity production and distribution increased by 8.16%, contributing 0.31 percentage points; the Water supply, sewerage, waste management and remediation activities increased by 6.75%, contributing 0.04 percentage points; the mining industry decreased by 6.61% (due to a decrease in crude oil production by 7.3% and a decrease in natural gas by 12.5%), reducing the overall growth rate by 0.25 percentage points.
As for the usage of industrial products, the index of industrial production (IIP) of intermediate products (for the following production process) in the 1st 6 months of 2021 increased by 10.1% over the same period last year; the IIP of products for the final consumption increased by 8.7% (of which products for residents’ consumption increased by 5.7%).
In 2-digit industrial activities, the index of production in 6 months/2021 of some key activities significantly increased compared to the same period last year: Manufacture of basic metal (37%); manufacture of motor vehicles, trailers and semi-trailers (33.1%); mining support service activities (29.4%); manufacture of machinery and equipment n.e.c (17.2%); manufacture of furniture (15.3%); production of leather and related products (12.9%); manufacture of computer, electronic and optical products (12.7%); waste collection, treatment and disposal activities; materials recovery (12.6%); manufacture of paper and paper products (11.2%); production of motorcycles and motorbikes (10.6%); manufacture of electrical equipment (10.1%). On the other side, a number of industries saw a decrease: Extraction of crude petroleum and natural gas (-10.1%); mining of coal and lignite (-4.4%); printing and reproduction of recorded media (-3.9%); manufacture of pharmaceuticals, medicinal chemical and botanical products (-2.3%); repair and installation of machinery and equipment (-1.8%); sewerage and sewer treatment activities (-1.5%).
Some key industrial products in the first 6 months of 2021 increased sharply compared to the same period last year: Laminated steel (61.6%); automobikes (50%); phone accessories (38.8%); NPK mixed fertilizer and mobile phones (both by 18.1%); crude steel, iron (16.6%); powdere milk (15.9%); Textile fabric from polyester or artificial yarn (11.7%); motorbikes (11.5%); leather footwear (11.4%); chemical paint (11%); animal feed (10.8%). Some products decreased compared to the same period last year: Natural gas (-12.5%); refined sugar (-8.4%); Urea fertilizer (-8.1%); Extracted crude oil (-7.3%); Monosodium glutamate (-5.4%); coal (- 4.3%).
Consumption index of the manufacturing industry in June 2021 increased by 4.9% over the previous month and by 4.2% over the same period last year. Generally in the first 6 months of the year, the consumption index of the whole manufacturing industry increased by 9.3% over the same period last year, of which a number of industries had high consumption indexes: Manufacture of motor vehicles, trailers and semi-trailers (29.8%); manufacture of basic metals (25.3%); Manufacture of machinery and equipment n.e.c (24.1%); manufacture of motorcycles and motorbikes (16.1%); manufacture of furniture (15.9%); manufacture of wood and products of wood and cork (12.1%); manufacture of fabricated metal products, except machinery and equipment (11.7%); manufacture of electrical equipment (10.9%). Some industries had a decrease in consumption index: Manufacture of pharmaceuticals, medicinal chemical and botanical products (-16.9%); Printing and reproduction of recorded media (-14.4%); Manufacture of computer, electronic and optical products (-14%); Manufacture of coke and refined petroleum products (-3.9%).
The inventory index of the manufacturing industry was estimated as of June 30, 2021, increasing by 24.3% over the same period last year (in the same period of 2020 it increased by 26.7%), of which a number of industries have inventory index increase lower than the general increase or decrease: manufacture of furniture (15.9%); manufacture of wearing apparel (15.8%); manufacture of other non-metallic mineral products (12.7%); manufacture of tobacco products (6.3%); manufacture of basic metals (4.3%); printing and reproduction of recorded media (4%); manufacture of wood and products of wood and cork (0.4%); manufacture of paper and paper products (-14.2%); manufacture of machinery and equipment n.e.c (-15.1%). Some industries have a high inventory index compared to the same period last year: manufacture of leather and related products (44.4%); manufacture of pharmaceuticals, medicinal chemical and botanical products (39.9%); manufacture of rubber and plastics products (38.6%); manufacture of motor vehicles, trailers and semi-trailers (36.4%); manufacture of electrical equipment (29.9%); manufacture of fabricated metal products, except machinery and equipment (28.1%); manufacture of other transport equipment (26.3%); manufacture of computer, electronic and optical products (25.3%).
The average inventory rate of the manufacturing industry in the first 6 months of 2021 reached 75.2% (the same period last year was 81.5%), of which a number of industries had a high inventory ratio: Manufacture of rubber and plastics products (124.5%); Manufacture of wood and products of wood and cork (119.2%); manufacture of textile (117.8%); Manufacture of food products (108.1%); manufacture of chemicals and chemical products 105.3%; manufacture of products from prefabricated metal (except for machinery and equipment) 104%; manufacture of electrical equipment 102.5%.
The number of employees working in industrial enterprises as of June 1st, 2021 decreased by 1.4% over the same period last month and decreased by 1% from the same period last year, of which the number of working employees in the state-owned enterprise sector decreased by 0.1% and dropped by 2.3%; non-state enterprises went down by 0.4% and rose by 0.6%; enterprises of foreign direct investment went down by 2.1% and reduced by 1.4%. By industry, the number of employees working in mining and quarrying kept unchanged over the same period last month and fell by 2.5% against the same period last year; manufacturing decreased by 1.5% and down by 1%; the production and distribution of electricity rose by 0.1% and increased by 0.3%; the water supply, sewerage, waste management and remediation activities kept unchanged and decreased by 0.4%.
[1] The added value of the industry in the second quarter of 2020 only increased by 1.1%.