The fourth Covid-19 pandemic with a new strain has been complicated, negatively affecting industrial production in July and seven months of this year. The industrial production index in July 2021 only increased by 1.8% over the previous month and by 2.2% over the same period last year, which is the lowest increase in the past seven months (except for February with the lowest number of working days)[1]. In general, for seven months of 2021, the index of industrial production increased by 7.9% compared to the seven months of 2020.

The index of industrial production (IIP) in July 2021 was estimated to grow by 1.8% over the previous month and to rise by 2.2% from the same period last year, of which the mining industry went down by 8%; manufacturing increased by 2.9%; electricity production and distribution went up by 6,7%; water supply, waste and wastewater management, and treatment up by 4.4%.

Overall, in seven months of 2021, the IIP was estimated to increase by 7.9%, significantly higher than 2.6% of the growth rate in the same period last year and lower than 9.4% of seven months in 2019. Of which, the manufacturing rose by 9.9% (the same period last year up 4,2%), contributing 8.1 percentage points to the general growth; electricity production and distribution went up by 8.2%, contributing 0.7 percentage points; water supply, waste and wastewater management, and treatment peaked up by 5.6%, contributing 0.1 percentage points; the mining industry alone shrank by 6.3%, down by 1 percentage points in the general growth rate.

The index of production in 7 months 2021 belonging to 2-digit industrial activities significantly increased compared to the same period last year: Manufacture of basic metal (34.7%); Manufacture of motor vehicles; trailers and semi-trailers (30.6%); Manufacture of leather and related products (14.2%); Manufacture of furniture (13.3%); Manufacture of machinery and equipment n.e.c (13%); In the opposite side, IIP of some activities decreased: Extraction of crude petroleum and natural gas (-10.4%); Manufacture of pharmaceuticals, medicinal chemical and botanical products (-8.6%); Mining of coal and lignite (-2.9%); Printing and reproduction of recorded media (-1.7%); Repair and installation of machinery and equipment (-1.1%); Sewerage and sewer treatment activities (-0.3%).

The 7/2021 IIP over the same period last year of 19 provinces in the southern area implementing social distancing according to Directive No.16/CT-TTg to prevent and control the Covid-19 pandemic as follows: IIP of 7 provinces decreased and 12 provinces increased. Specifically, Ho Chi Minh City (-19.4%); Long An (-14.6%); Ca Mau (-13,7%); Dong Thap (-5.7%); Tra Vinh (-5.3%); Ba Ria – Vung Tau (-1.9%); Ben Tre (-0.2%). Nevertheless, IIP of some provinces increased[2] because some industrial zones strived to maintain supply chain, ensure requirements of disease prevention with 3-on-site production, therefore being allowed to operate to continue to fulfill production orders signed before: (1) Bac Lieu (13.7%) because electricity production rose by 137.6% (adding Dong Hai 1 wind power plant connected to the grid in February 2021, Cong Ly wind power plant, Hoa Binh wind power plant connected to the grid in March 2021); (2) Binh Phuoc (12.2%) as manufature of food products increased by 29.5%; (3) Hau Giang (10.1%) as manufacture of food products went up by 3,3%; manufacture of leather and related products up by 27.2%; manufacture of beverage rose by 76.4%; (4) Kien Giang (8.8%) as manufacture of other non-metallic mineral products peaked up by 6.5%; manufacture of leather and related products increased by 69.5%; electricity production rose by 14%; (5) Can Thơ (8.1%) as Manufacture of food products leaped by 20.2%; manufacture of rubber and plastic growed by 30.6%; manufacture of motor and motorbike surged by 52%; (6) Soc Trang (7.6%) as manufacture of food products jumped by 3.6%; manufacture of beverage went up by 67.4%; (7) An Giang (6%) as manufacture of textiles rose by 20.2%; manufacture of apparel increased by 0.9%; manufacture of leather and related products up by 10.1%; Manufacture of other non-metallic mineral products surged by 14.6%.

Bac Ninh and Bac Giang controlled the Covid-19 pandemic, production activities inside the industrial zone have been recovered gradually. The IIP growth rate of May, June, and July over the same period year of Bac Giang and Bac Ning is accordingly: IIP of Bac Giang in May reduced by 26.7%; in June decreased by 49.8% and in July dropped by 15.3%; IIP of Bac Ninh increased by 23.9%; went up by 8.6% and surged by 1.1%. IIP of Ha Noi in 7/2021 increased by 7.8% over the same period last year due to implementing social distancing from 24/7/2021.

The 7 months IIP of 2021 of some localities[3]  although heavily affected by the Covid-19 pandemic, still increased compared to the same period last year[4] such as: (1) Binh Duong increased by 7.4% because manufacture of furniture increased by 21.4%; manufacture of computer, electronic and optical products increased by 8.3%; manufacture of basic metals by 19.2%; (2) Can Tho increased by 7.2% due to the increase of 7% in manufacture of food products; manufacture of chemicals and chemical products increased by 82.8%; manufacture of tobacco increased by 17.7%; production of rubber and plastic products increased by 20.3%; (3) Dong Nai increased by 7.1% due to an increase of 11.2% in leather and related products; manufacture of textile up 8.5%; manufacture electrical equipment increased by 8.5%; manufacture of funiture  peaked up by 12.7%; (4) Tien Giang increased by 3.1% due to the increase of 47.7% in the manufacture of apparel; manufacture of leather and related products increased by 15%; manufacture of electrical equipment increased by 35.2%; (5) Long An increased by 3% due to an increase of 4.8% in the manufacture of food products; manufacture of basic metal went up by 5%; Manufacture of fabricated metal products, except machinery and equipment increased by 7.3%; manufacture of electrical equipment rose by 12.5%; manufacture of apparel surged by 7.7%; (6) Ho Chi Minh City increased by 2.3% as manufacture of leather and related products increased by 5.7%; manufacture of textile by 4.9%; manufacture of electronic, computers and optical products by 7.3%; manufacture of electrical equipment increased by 20.7%; (7) Dong Thap increased by 2.1% due to an increase of 2.2% in the manufacture of food products; manufacture of apparel increased by 32.8%…

Some major industrial products in 7 months of 2021 increased sharply over the same period last year: Laminated steel (55.9%); Phone accessories (40%); automobiles (39.6%); leather footwear (19.3%); crude steel, iron (16.2%); N.P.K mixed fertilizer (15.4%); mobile phone (14.1%); powder milk (14%); Textile fabric from natural yarn and Textile fabric from polyester or artificial yarn (both 10.6%); Animal feed (10%); clothes (9.5%). Some products decreased compared to the same period last year: Natural gas (in the form of air) (-13.4%); television (-10.3%); Refined sugar (-9.5%); Urea fertilizer (-7.4%); Extracted crude oil (-6.8%); Monosodium glutamate (-5.1%); coal (pure) (-2.8%).

The number of employees working in industrial enterprises as of 1/7/2021 kept unchanged over the same period last month and down by 0.4% over the same period last year, of which the number of working employees in the state-owned enterprise sector went down by 0.2% and decreased by 2.7%; non-state enterprises decreased by 0.4% and declined by 0.8%; enterprises of foreign direct investment both rose by 0.2%. By industry, the number of employees working in mining and quarrying peaked up by 0.1% over the same period last month and fell by 0.4% against the same period last year; manufacturing kept unchanged and shrinked by 0.4%; the production and distribution of electricity declined by 0.1% and reduced by 0.2%; the water supply, sewerage, waste management, and remediation activities diminished by 0.2% and dropped by 1.3%.

[1] Industrial production index in the months of 2021 compared to the same period last year: January increased by 23.7%; February decreased by 8.3% (because the Lunar New Year focused on February); March rose by 3.6%; April up 22.2%; May peaked up by 11.9%; June rose by 4.9%; July surged by 2.2%.

[2] IIP in July 2020 compared to the same period last year of some localities increased or decreased: TP. Ho Chi Minh City (- 3.8%); Tien Giang (-1.4%); Can Tho (-4.8%); Vinh Long (-8.8%); Dong Thap (+ 4.3%); An Giang (+5.5%); Hau Giang (+8.3%); Soc Trang (+7.2%); Bac Lieu (+7.6%); Kien Giang (+8.6%).

[3] IIP in 7 months of 2020 compared with the same period last year of some localities: Binh Duong (+ 6.1%); Dong Nai (+5.3%); Long An (+3.4%); Dong Thap (+ 2.3%); Tien Giang (+ 0.7%); Can Tho (-1.1%); Ho Chi Minh City (-5.5%).

[4] Some localities with newly increased capacity completed in December 2020 and supplemented in 7 months of this year are: Binh Duong added Bau Bang Industrial Park; My Phuoc Industrial Park 1,2,3; Thoi Hoa Industrial Park; mesh fabric factory – Paihong Vietnam Co., Ltd; Household wood processing factory – Moc Xuyen Woodworking Co., Ltd…; In Dong Nai, there are VeDan MSG Factory, Changshin Shoe Factory, Kim Son Bao Company building a new factory, Glue Factory and raw material warehouse of Kenda Rubber Company Vietnam, production line of Ton Phuong Nam company; in Vinh Long, there is Hai Dai Vinh Long animal and poultry feed factory (completed in October 2020), Kyungshin Vietnam auto parts factory; In Can Tho, there is Hung Phu 1 industrial park.