A view of HCM City’s skyline. — Photo tripsavvy.com

HCM CITY — HCM City’s index of industrial production is expected to increase by 7.94 per cent month-on-month in May but decline by 7.16 per cent from a year earlier, according to the city Statistics Office.

The office blamed the year-on-year decrease on the fact that the COVID-19 pandemic has not been controlled in Việt Nam’s major trading partners such as the US, Europe, India, Indonesia, the Netherlands and Singapore.

In the first five months, the sectors that achieved sharp increases were chemicals and chemical products (up 23.2 per cent), medicines, pharmaceutical chemicals and pharmaceutical raw materials (19.4 per cent), and electronics, computers and optical products (11.8 per cent).

Those that declined included metal production (down 46.5 per cent), wood and bamboo and wooden products (34.1 per cent), machinery and equipment (24.6 per cent), pre-fabricated metal products (22.8 per cent), and beverages (21.2 per cent).

The inventory index of the processing and manufacturing industry was estimated to increase by 9.2 per cent year-on-year. 

In the first five months, the electrical equipment segment saw inventories rise by 84.4 per cent, the chemicals and chemical products industry by 67.2 per cent and the metals industry by 43.3 per cent.

The index dropped sharply in the cases of some industries such as leather products (91.8 per cent); wood and bamboo products except beds, wardrobes, tables, and chairs (24.5 per cent) and other machinery and equipment (21.7 per cent).

According to a survey by the HCM City Statistics Department of more than 16,300 enterprises in various industries, 49.45 per cent of enterprises affected by the pandemic thought that the domestic consumer market has shrunk. Some 15.32 per cent said manufactured goods could not be consumed domestically.

More than half of State-owned enterprises and 48.45 per cent of FDI enterprises with exports said they have been unable to export this year.

Phạm Thành Kiên, director of the city Department of Industry and Trade, said the department is working with the Statistics Office and other agencies to monitor the production and consumption situation to take measures to support business during the rest of the year.

Speaking at a recent meeting, Nguyễn Thiện Nhân, secretary of the city Party Committee, said the city is seeking opinions from experts and enterprises on the best way to revive the economy.

“The priority is to prevent bankruptcy of enterprises by providing incomes to workers so that [the companies] can keep their [workers]. He was referring to the fact that the city was planning to pay the wages of workers working for companies.

“We must ensure that enterprises restore production and services as soon as possible to meet domestic demand. 

“It is important to encourage domestic production to replace imported goods and expand domestic value chains.” — VNS