A factory in the Giang Dien Industrial Park in Trang Bom district, southern Dong Nai province. (Photo: VNA) However, the office also reported that IIP in the first fourmonths of 2023 decreased by 1.8% year on year. The IIP growth in the first fourmonths of 2022 was 7.8%.
Among the sectors, the water supply, waste-water treatment andmanagement activities recorded the highest IIP increase of 5.5% in the firstfour months. The electricity generation and distribution sector followed with0.5%.
However, the mining industry and the processing and manufacturingsaw a decline of 2.8% and 2.1% in IIP, respectively.
The world economy's slow recovery and tightened monetary policy inmany countries has made the consumption demand of major trading partnersdecline, leading to a decrease in goods orders and export turnover. Thosefactors affected the growth of industrial production in the first four monthsof 2023, according to the Ministry of Industry and Trade (MoIT).
In terms of localities, the GSO said in the first four months, 52localities gained growth in this index compared to the same period of lastyear, while IIP decreased in the remaining 11 localities.
Of which, Tuyen Quang recorded the highest increase in IIP at 14.8%.Dak Lak followed with the IIP growth at 14.2%. Other top ten localitiesachieving high growth rates included Thai Binh (13.8%), Hau Giang (13.8%), HaiPhong (13.4%), Bac Giang (13.3%), Quang Tri (12.2%), Nam Dinh (12%), Kien Giang(11.6%), and Cao Bang (11.2%).
Several essential industrial products showed a decrease in IIPduring the first four months of 2023, including automobiles (19.3%), bar andangle steel (15.1%), mobile phones (13%), motorbikes (12.3%), ureafertiliser (12.2%), textiles from natural fibres (11.1%), casual wear (10.4%),and phone components (10.1%).
Meanwhile, some other products gained growth in IIP in the sameperiod, such as sugar (23.2%), gasoline (15.1%), garments made from man-madefibres (12.2%), NPK fertiliser (10.4%), and chemical paint (6.1%).
The world economy has shown signs of recovery but it is slow andunequal in different countries, so consumer demand is alsorecovering slowly. China's reopening also increases competition for Vietnam'sproducts in export markets.
They are factors that will continuously affect Vietnam'sproduction and trade activities in the coming months.
Besides that, the slow recovery of the real estate market and lowdisbursement of investment capital will affect the consumption of some relatedmanufacturing industries.
To promote production development and support businesses, MoIT hassaid it will closely monitor the production of sectors and fields to promptlygrasp and remove difficulties in promoting production development.
In addition, the ministry will continue to implement theconnection of domestic enterprises to FDI enterprises and large globalenterprises to participate in their global supply chains.
At the same time, it continues to support businesses, especiallysmall and medium-sized enterprises, to recover and develop production throughsolutions for stabilising financial and monetary markets. Those solutionsinclude proposing the exemption and reduction of some taxes and fees, andfavourable conditions on access to credit.
According to experts, Vietnam should give priority to thedevelopment of domestic manufacturing industries, especially the mechanicalindustry.
According to Nguyen Ngoc Thanh, Deputy Director of MoIT's IndustryAgency, the processing and manufacturing industry plays a key role, creatingthe largest added value for the industrial sector. Most of Vietnam'simportant economic sectors directly or indirectly depend on the manufacturingindustry. It is also to provide employment and stable income for the long term.
So it is necessary to have timely and efficient policies andsolutions to find markets for industrial products, thereby promoting domesticproduction and improving economic growth.
Assoc. Prof. Dr. Nguyen Chi Sang, Vice Chairman of the Vietnam Association of MechanicalIndustry, said that the Government should promote the development of finishedmechanical products and large mechanical products forseveral industries such as wind power, high-speed railwaysand medical equipment. Vietnam needed a strategy and a roadmap to makethose products.
Economist Dr. Le Dang Doanh said it was necessary to promote Vietnam'sadvantages for sustainable industrial development. Specifically,industrialisation in Vietnam should combine agriculture and industry with thedevelopment of industrial products for lines processing agricultural productsto enhance the value of Vietnam's farm produce.
According to Thanh, to promote domestic production, the steel andmechanical industries need to take advantage of public investment capital inlarge projects in the field of industrial construction, infrastructure,transport and energy, to create a market for mechanical products.
For the auto industry, it is necessary to increase purchasingpower to restore the auto market, maintaining and promoting the assembly ofautomobiles in the country.
MoIT is working with the Ministry of Finance to research andpropose the Government issue a number of financial support policies for theindustry. They include extending the deadline for paying excise tax or havingincentives on registration fees for domestically manufactured and assembledcars./.
VNA
