HCM City’s industrial production rebounds in May hinh anh 1HCM City records a month-on-month increase of 7.9 percent in the Index of Industrial Production in May (Photo: VNA)

HCM City (VNA) - The Index of Industrial Production (IIP) for HCM City in May rose 7.9 percent against April but was down 15.5 percent year-on-year, according to the city’s Department of Industry and Trade.

The department said this reveals an improvement in local industrial production compared to April, but as COVID-19 has yet to be contained in many countries that are major trade partners of Vietnam, the IIP contracted against May last year.

The five-month IIP, meanwhile, was down 7.2 percent year-on-year.

The consumption indicator in processing and manufacturing fell 5 percent from a year earlier. Metal products, wooden and bamboo items (except furniture), machinery, and electrical devices posted sharp year-on-year declines in sales.

Between January and May, the inventory index surged 84.4 percent in electrical device production, 67.2 percent in chemical and related product manufacturing, 43.3 percent in metal production, and 40.5 percent in motorised vehicle manufacturing.

Meanwhile, local businesses earned more than 3.38 billion USD from exports in May, up 10 percent month-on-month. Overseas shipments increased 6.3 percent year-on-year to more than 16.96 billion USD during the first five months of the year.

Deputy Director of the department Nguyen Phuong Dong said China remained the city’s largest export market, with 3.97 billion USD worth of goods shipped there during the five-month period, an increase of 38.5 percent year-on-year and accounting for 25.7 percent of the city’s total exports, followed by the US and Japan.

Exports to the EU, whose free trade agreement with Vietnam is to take effect shortly, was approximately 1.85 billion USD, down 11.6 percent from a year earlier and equal to 11.9 percent of the city’s total./.