Vietnam’s Index of Industrial Production (IIP) has fallen 2.2 per cent in the first quarter of 2023 compared to the same period last year, according to the General Statistics Office (GSO).

The manufacturing sector fell 0.37 per cent year-on-year and mining 5.6 per cent, while water supply and sewerage and waste management and remediation activities rose 5.38 per cent.

The decline was blamed on the global economy continuing to encounter difficulties, high inflation in many countries, and falling orders and exports.

Purchasing power has recovered in the domestic market but remains weak and has not boosted production. Links between the domestic market and production sectors also remain weak, according to the GSO.

Businesses still face problems gaining access to credit while interest rates and production material prices remain high.