HCM City’s industrial growth predicted to rise 8-8.5 percent hinh anh 1Illustrative image (Source: VNA)

HCM City (VNA) Industrial production of Ho Chi Minh City is forecast to see stable growth in 2018, with the index of industrial production index (IIP) to expand by 8-8.5 percent year-on-year.

According to the municipal Department of Industry and Trade, the city’s IIP in 2017 increased by 7.9 percent compared to 2016.

The city’s four key industrial sectors saw an average growth of 15.5 percent, much higher than the overall rate. In particular, the IIP of the electronics-information technology industry expanded by 39.11 percent, and that of processing and manufacturing industry by over 8 percent).

Meanwhile, the chemicals – plastic- rubber industry posted a growth of 3.4 percent after slow development in 2015 and 2016.

Deputy Director of the department Nguyen Phuong Dong attributed the good performance to efforts made by local enterprises and the municipal authority’s policy to promote industrial development.

Decision No.15/2017/QD-UNBD issued by the municipal People’s Committee in early 2017 on supporting businesses to develop industrial manufacturing and supporting industry has also contributed to boosting the city’s industrial development.

According to the department, there is a great potential to develop the mechanical sector in the city, especially automobile industry.

However, industrial enterprises are also facing difficulties and challenges, especially in terms of competitiveness and markets.

The department said many measures will be implemented to support industrial enterprises in their production and business activities in 2018, towards accelerating restructuring of the industrial sector in connection with renovating the growth model.

According to Le Nguyen Duy Oanh, Deputy Director of the HCM City Department of Industry and Trade's Centre of Supporting Industry Development, her agency will focus on assisting support industry enterprises in raising their supply capacity, expanding production and connecting with more domestic and foreign partners, thus gradually joining the global supply chain.-VNA