The nation's Index of Industrial Production (IIP) increased 4.8 percent in the first seven months of this year over the same period last year, the General Statistics Office reported.

This is the lowest increase of the industrial index over the last three years but the highest since the beginning of this year, following a year-on-year increase of 6.1 percent in July alone.

GSO economic specialists said industrial production has shown signs of recovery after a prolonged downturn and this proved the Government's financial measures – including interest rate cuts and a 29 trillion VND(1.4 billion USD) support package – to stimulate production had taken effects.

The manufacturing and processing area, which represents up to 70 percent of all industrial production values, postes the highest consumption index growth at 5.9 percent in seven months, while it is only around 3.5 percent in April and May, and 0.2 percent in the first two months.

Consumption of engined-vehicles expanded significantly at 70.3 percent, followed by garments at 41.7 percent and electronic products at 40.5 percent.

Several areas posted significant declines, however, such as electrical cables and wires at 59.8 percent, fertilisers at 34 percent and footwear at 12.6 percent.

On July 1, the inventory index grew 20.2 percent, remaining a worrying level according to GSO specialists, although this index had fallen significantly compared to a peak of 34.9 percent in March.

Areas witnessed high inventory increases, including iron and steel at 48.7 percent, cement at 34.4 percent, and animal feed and seafood at 32.1 percent.-VNA