The industrial production index in January 2026 increased by 21.5%, with the manufacturing sector leading the way.
The Industrial Production Index (IIP) in January 2026 recorded an impressive growth of 21.5% compared to the same period last year, mainly due to the recovery of orders and a strong breakthrough from the processing and manufacturing sector.
According to a report released by the General Statistics Office on February 6th, the Industrial Production Index (IIP) for January 2026 is estimated to have increased by 21.5% compared to the same period last year. The main driving force comes from improved export orders and six more working days in the month compared to the same period in 2025.
The processing and manufacturing sector maintains high growth momentum.
In the first-tier industries, the processing and manufacturing sector played a pivotal role with a 23.6% increase, making a significant contribution to the overall index. Other segments also recorded stable growth: electricity production and distribution increased by 14.1%; water supply, waste management and wastewater treatment increased by 13.6%; and mining increased by 10.3%.
In key second-tier industries, several sectors achieved outstanding growth rates compared to the same period last year. Specifically, the production of other non-metallic mineral products increased by 41.9%; motor vehicle production increased by 36.6%; and metal production increased by 35.4%.
In addition, sectors such as chemical manufacturing (+35.2%), paper manufacturing (+31.9%), beverages (+26.1%), and apparel (+25.3%) also maintained positive production momentum. In the mining and energy sector, coke and refined petroleum product production increased by 9.3%, while crude oil and natural gas extraction increased by 6.2%.
Positive signals from 34 localities and key products.
Notably, the industrial production index for January 2026 recorded synchronized growth across all 34 localities. Regions with strengths in processing, manufacturing, and electricity generation achieved relatively high growth rates, contributing to ensuring supply for the domestic market and exports.
In terms of product categories, mobile phone components were the fastest-growing item at 92.7%. This was followed by motorcycles (up 54.3%), cement (up 48.9%), automobiles (up 48.5%), and rolled steel (up 38.0%). However, the market still recorded declines in some items such as urea fertilizer (down 40.0%) and mobile phones (down 6.1%).
The labor market is improving in the FDI sector.
As of January 1, 2026, the number of workers employed in industrial enterprises increased by 0.8% compared to the previous month and by 4.3% compared to the same period in 2025. Of these, the foreign direct investment (FDI) sector saw the highest labor growth, reaching 6.0% year-on-year.
By sector, employment in the manufacturing industry increased by 4.5%; in the electricity and gas production and distribution industry by 1.9%; and in the water supply and waste treatment industry by 1.6%. Conversely, the workforce in non-state enterprises recorded a slight decrease of 0.2% compared to the same period last year.
