Việt Nam's industrial production surges in five months

June 02, 2024 - 06:23
Electricity production and distribution was up by 12.7 per cent and water supply, waste and wastewater management and treatment activities by 6.3 per cent.
A fibre production plant in the central province of Hà Tĩnh. — VNA/VNS Photo Vũ Sinh

HÀ NỘI — The country's industrial production index (IIP) is continuing its positive growth pace with an increase of 3.9 per cent over April and 8.9 per cent compared to the same period last year, according to the General Statistics Office (GSO).

The GSO said the IIP in the first five months soared 6.8 per cent year-on-year. The index saw a yearly decline of 2 per cent in last year's corresponding period.

The manufacturing and processing sector increased by 7.3 per cent. Electricity production and distribution was up by 12.7 per cent and water supply, waste and wastewater management and treatment activities by 6.3 per cent. The mining sector dropped by 5.2 per cent.

Sectors that recorded a significant IIP rise were rubber and plastic, up 27 per cent, and furniture, up 24 per cent while others that posted a decrease in IIP were repair, maintenance and installation of machinery and equipment, down 12 per cent; crude oil and natural gas exploitation, down 11 per cent and production of other means of transport, down 5 per cent.

According to the GSO, the IIP increased in 55 localities and dropped in eight during the reviewed period.

Some localities that recorded a high growth rate in the IIP were Phú Thọ at 31 per cent; Bắc Giang (25 per cent); Bình Phước (15 per cent); Hà Nam and Hải Phòng (14 per cent). Localities that saw a fall included Hà Tĩnh (9 per cent); Quảng Ngãi (8.2 per cent) and Cà Mau (2.5 per cent).

The GSO also said that the number of workers in industrial enterprises as of May 1, 2024, increased 1 per cent month-on-month and 3.2 per cent year-on-year.

According to Đào Phan Long, Chairman of the Vietnam Association of Mechanical Industry, the continued efforts of developed countries to diversify supply sources, supply chains and investments would help Việt Nam become a significant production and export hub in the global value chain.

However, the global economic forecast for 2024 suggested weak growth, high inflation and geopolitical tensions in various regions. Việt Nam's participation in numerous free trade agreements and its open economy made it susceptible to negative impacts from these risks.

Long said firms still needed connectivity solutions provided by ministries and sectors and support from authorities in addressing difficulties relating to capital, interest rates, and administrative procedures.

The Ministry of Industry and Trade pledged to expedite the disbursement of public investment and review pending issues to quickly bring key projects in the electricity, oil and gas, manufacturing, processing and mining industries into operation, creating market capacity for business development. — VNS