HCMC – The index of industrial production (IIP) of HCMC in 2022 is estimated to expand 17.3% over 2021, indicating the city’s economic recovery is on track.
The IPP of four key industries has grown nearly 20%, 2.6 percentage points higher than the overall growth of the industrial production sector.
According to the municipal government, the food and beverage processing industry has posted the strongest increase this year, up 28.2% year-on-year, while its index in 2021 dropped 14.2% compared to 2020.
Specifically, the industry saw a modest growth of 3.2% in the first quarter, but it doubled to 7% in the next quarter and soared to 28.2% by the end of September. The growth momentum is expected to continue and make the index top 30% during the year’s end, facilitated by the comeback of outdoor recreation activities and the reopening of the hospitality industry.
The chemicals, pharmaceuticals, rubber and plastic industries have also expanded 26.5% over last year, while the mechanical and electronic manufacturing industries have picked up 11.3% and 5.8% year-on-year, respectively.
Benefits of free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement, coupled with the market diversification strategy, have boosted the production of HCMC-based businesses, thereby accelerating the nation’s recovery from Covid-19 impacts.
Though the industrial production sector has entered the recovery phase and somewhat stabilized business operations, it should prepare for challenges and economic woes next year, said an official of the HCMC Department of Industry and Trade.