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Vietnam’s industrial production rose 1.0% year-on-year in February 2026, a sharp deceleration from the downwardly revised 19.4% surge recorded in January and the weakest expansion since January 2025. The slowdown was largely attributable to reduced activity during the Lunar New Year holiday, which typically disrupts manufacturing operations.
Growth in the key manufacturing sector moderated markedly, with output up 2.3% compared with 23.6% in January. At the same time, production declined across several other major sectors: mining and quarrying contracted 5.3% after a 15.8% increase in the previous month; electricity and gas supply fell 4.5% following a 16.7% rise; and water supply, waste management, and wastewater treatment dropped 5.6% after growing 10.6% in January.
On a month-on-month basis, overall industrial output declined 18.4%. Nonetheless, despite the February slowdown, industrial production in the first two months of 2026 was still up 10.4% compared with the same period a year earlier.
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