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Businesses ready themselves for year-end push

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Many localities and businesses have taken the initiative in boosting production to ensure a sufficient supply of goods for the market for the rest of the year. The Vietnam Economic News reports.

Data from the Ministry of Industry and Trade show that in October 2013 the index of industrial production (IIP) increased 5.9 percent compared with October 2012 (processing and manufacturing industries up 8.2 percent; electricity production and distribution 9 percent; water supply and waste treatment 11.6 percent; and mining industry down 2.8 percent).

In the first 10 months of this year, the IIP grew 5.4 percent compared with the same period last year (processing and manufacturing industries up 6.9 percent; electricity production and distribution 8.6 percent; water supply and waste treatment 9.3 percent; and mining industry down 0.8 percent).

Sectors which achieved a high IIP growth rate included liquefied petroleum gas (10.5 percent), petrol and oil (24.6 percent), and powdered milk (13.8 percent). So, industrial production remained on the rise in the first month of the fourth quarter and is predicted to further increase in the later months of the year when the consumer demand increases.

In September 2013, the sales index of the processing and manufacturing industries grew 15.2 percent compared with September 2012. In the first nine months, the index increased 10.3 percent compared with the same period last year. Some sectors continued to achieve a stable sales growth index, for example beer (11 percent), yarn (15.1 percent), garments (except clothing) 70.8 percent, and footwear (33 percent).

While sales increased, inventories strongly decreased.

Sectors where the inventory index considerably decreased included shuttle woven fabrics (down 44.2 percent), cement (43.1 percent), electronic components (74.9 percent), and motorised vehicles (48 percent).

By October 1, 2013, the inventory index of the processing and manufacturing industries was 9.7 percent higher compared with the same point of time last year. Some sectors have taken the initiative in increasing the inventory level to prepare for a sufficient supply on the occasion of the Lunar New Year (Tet), the longest and most important annual festival in the country. For example, beverage production increased 2.6 times.

Preparing for year-end sales

As usual, the late months of each year offer opportunities for businesses to increase sales to serve higher consumer demand. Businesses and localities have worked out specific plans to prepare sufficient goods for sale during these months, especially on the occasion of Tet.

Nguyen Hong Linh, General Director of the Hanoi Beer, Alcohol and Beverage Joint Stock Corporation (Habeco), said that during the late months of each year, especially the time prior to Tet holidays, beer and alcohol sales were double those of other months. Therefore, Habeco is operating at its full capacity to prepare sufficient products for sale at its agents and branches in localities. The corporation believes it will be able to produce enough for sale on the Tet occasion.

Vo Van Quyen, Director of the Domestic Market Department under the Ministry of Industry and Trade, said that the food sector currently faced a scarcity of breeding stock but saw good possibilities for repopulation. Therefore, if it overcomes breeding difficulties, the sector will be able to ensure sufficient supplies during Tet holidays.

According to Ho Chi Minh City Industry and Trade Department Deputy Director Nguyen Phuong Dong, along with boosting production, the city will coordinate with the Ministry of Industry and Trade to organise a meeting in November with the participation of about 350 producers and distributors. They will discuss measures to set up distribution channels to facilitate the sales of goods during the later months of this year.

Preventing price rises during the later months of the year is an important task. Data from the Ministry of Industry and Trade show that 11 provinces, not including Ho Chi Minh City and Can Tho, have developed price stabilisation programs with total value of about 850 billion VND (40 million USD). The Ministry of Industry and Trade will intensify market surveillance activities to prevent prices from rising during the year-end period.-VNA
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