Industrial production expands 10.9 percent in seven months hinh anh 1Illustrative Image (Source: VNA)

Hanoi (VNA) – Vietnam saw strong growth in its industrial production index (IIP) in the first seven months of 2018 thanks to the expansion of many major economic sectors, especially processing and manufacturing, which recorded the highest expansion in the recent seven years.

According to the General Statistics Office, the IIP in July grew 14.3 percent over the same period last year, pushing total growth in the first seven months to 10.9 percent, higher than 7.1 percent in the same time last year.

Particularly, the processing and manufacturing industry maintained high growth at 13.1 percent, contributing 9.9 percentage points to total expansion. It was followed by power manufacturing and production which increased 10.7 percent.

Some sectors in the secondary industry (dominated by the manufacturing of finished products) also saw high growth, such as refined oil production (up 64.1 percent), mineral mining support services (up 25.2 percent) and electronics, computers and optical products (up 16.4 percent).

Many primary products rose substantially against the same period last year, including crude steel (up 41.1 percent), passenger cars (32.9 percent), liquefied petroleum gas (up 32.7 percent), synthetic fibres (up 19.1 percent), refined sugar (up 18.9 percent), seafood feed (up 18.5 percent) and televisions (up 14 percent).

However, some products saw declines in production due to lower demand, such as crude oil (down 11.3 percent), mobile phones (down 0.9 percent) and urea fertiliser (down 3.5 percent).

All 63 cities and provinces posted higher growth in industrial production against 2017’s corresponding period, of which Ha Tinh led with growth of 149.3 percent, thanks to the steel manufacturing by Formosa Ha Tinh Steel Corporation, followed by Thanh Hoa (where Nghi Son Refining and Petrochemical LLC started operations). 

The GSO reported that as of July 1, 2018, the number of labourers working in the industrial sector increased 3 percent from the same period last year, with a 0.3 percent rise in the State-owned sector, 3.6 percent in the non-State-owned sector and 3.1 percent in the foreign direct investment sector.

In the first seven months of 2018, processing and manufacturing was the most attractive sector for investors, luring more than 13.6 billion USD of foreign direct investment.

The GSO predicted that in the rest of the year, the IIP may slow down, reflecting the increasing importance of sustainable development.

The office recommended strengthening connectivity among businesses and the enhancement of their capacity to join supply chains, thus making industry grow more sustainably.

Along with promptly implementing targets stated in Resolution 23-NQ/TU of the Party Central Committee on building industrial policies, it is necessary to continue reducing business conditions, simplifying administrative procedures, enhancing the quality of online public services and using advanced technology to boost the growth of industry.

The office also stressed the need to handle stagnant and ineffective projects by the end of 2018, thus giving more resources to the development of industry.-VNA