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Industrial sector slump continues

Update: April, 27/2013 - 10:25

HA NOI (VNS)— The national index of industrial production (IPP) experienced a year-on-year increase of 5 per cent in the first four months of this year, said the General Statistics Office (GSO).

However, the office said the index's growth remained low compared with the rate of 5.9 per cent at the same period last year.

The index assesses the processing and manufacturing sector, which accounts for more than 70 per cent of the nation's total industrial production value. Figures show it surged 5.5 per cent followed by a modest reduction of 0.5 per cent in comparison to the first four months of 2012.

The production of steel decreased more than any other product, dropping 11.5 per cent. Textile industry output plunged 9.6 per cent while televisions production slumped 7 per cent.

The low indices show that the industrial sector still faces difficulties brought by the global economic downturn. This has led to a slump in purchasing powers in both domestic and foreign markets, the GSO said.

Great efforts to reduce domestic stockpiles of goods have led to decreases in industrial production, especially in the processing and manufacturing sectors, since the beginning of this year.

As of April 1, the inventory index for the two sectors saw a 13.1 per cent year-on-year rise, down 3.4 per cent from the previous month and 19 per cent in comparison with same time last year.

To overcome difficulties, experts recommend that industrial producers restructure production so they can churn out high-quality products and sell them to a wider market.

They also suggested the Government provide firms with easier access to capital and improve tariffs and the business environment. — VNS

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