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

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 information needs of State
agencies, investors and other users.

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

The calculation of 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 = n1  100
qn
q n0
Where:

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

qn1: Quantity produced of item n in the reference period.
qn0: Quantity produced of item n in the base period.

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