Page 504 - niengiam2021

EXPLANATION OF TERMINOLOGY, CONTENT
AND METHODOLOGY OF SOME STATISTICAL
INDICATORS ON INDUSTRY

Index of Industrial Production (IIP) is an indicator that
evaluates the growth rate of industrial production every month, quarter

and year. The index is calculated by the quantity of production,
therefore it is also called “the index of quantity of industrial
production”. The IIP is an important indicator quickly reflecting the
situation of industrial production growth in general and the growth

rate of each commodity in particular; satisfying the information needs
of the State agencies, investors and other users.

The IIP is calculated as the percentage of the quantity of
industrial production generated in the current and base periods.

The calculation of the IIP begins with the calculation of
production index of commodity. From the production index of
commodity, production indexes of VSIC 4-digit classes, VSIC 2-digit

divisions, VSIC 1-digit sectors and the whole industry can be calculated
and so can the IIP for a certain province or the whole country.

Calculation process:

- Step 1: Calculating production index of an item

Formula:

q
i qn  1 n  100
q n 0

Where:

iqn: Production index of the item n (For example: electricity,
coal, fabric, cement, etc);

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