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Wednesday, July 24, 2024

Vietnam’s industrial production inches up mildly in H1

The Saigon Times

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HCMC – The industrial production index (IIP) in Vietnam grew mildly in the first half of this year due to falls in new orders, weak demand, and rising input costs, according to the General Statistics Office.

From April to June, the IIP improved by 1.56% year-on-year, following a decline of 0.75% in the first quarter, resulting in average growth of 0.44% in the first six months.

In terms of sectors, mining ebbed by 1.43% from January to June, while manufacturing and processing grew by 0.37%. The electricity production and distribution sector recorded growth of 1.79%, and the water supply and waste treatment sector saw a rise of 5.45%.

During this period, several key industries recorded significant growth, including coke and refined petroleum (13.2%), metal ore mining (11.5%), rubber and plastic (7.2%), tobacco (6.7%), and beverages (5.7%).

On the other hand, the index weakened in other sectors such as wood processing and wood product manufacturing (7.7%), paper and paper product manufacturing (7.5%), and clothing and motor vehicle manufacturing (6.8%).

The report by the General Statistics Office also said that out of 63 localities, the six-month IIP increased in 48 and decreased in 15 compared to the same period last year.

Certain localities showed a relatively high increase in the industrial production index, primarily driven by the manufacturing and processing industry as well as the electricity production and distribution sector. However, some others saw slow growth or a decline in the IIP, mainly due to declines in the manufacturing and processing industry, mining, and electricity production and distribution sector.

Year-on-year, the consumption index of the manufacturing and processing industry in the first six months of the year edged down by a slight 2.2%. The average inventory ratio increased to 83.1% from 78% in the first half of 2022.

The Ministry of Industry and Trade is urging localities and sectors to complete industrial development projects and address any obstacles hindering enterprise growth. These efforts aim to stimulate growth and promote production within the industry.

Economists advised businesses to stay updated on market trends and predictions, especially with shifts in supply chains and protectionist policies. It is crucial for businesses to align their plans with short-term market trends while maintaining a long-term vision. Additionally, integrating digital transformation, eco-friendly practices, and technological advancements will help meet shifting market demands.

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