Vietnam's industrial production in August 2022 continued the trend of rapid recovery with an increase of 2.9% over the previous month and 15.6% year on year. (Photo: chinhphu.vn) The office said that industrial production in August 2022continued the trend of rapid recovery with an increase of 2.9% overthe previous month and 15.6% year on year due to the efforts ofenterprises in expanding production to offset the period affected by theCOVID-19 pandemic.
Compared to the same period last year, the IIP growth rate inAugust reached 16.2% for the processing and manufacturing industry; 14.8% forelectricity production and distribution; 11% for water supply, and managementand treatment of garbage and wastewater; and 10.2% for the mining industry.
During the eight months, the processing and manufacturing industryposted the highest IIP growth of 10.4%. It was followed byelectricity production and distribution (6.8%), water supply industry,garbage and wastewater treatment and management (5.8%) and the mining industry(4.2%).
The GSO report also showed that, in the past eight months, IIP ofsome key industrial products increased sharply compared to the same period lastyear, including beer (31.2%); processed seafood (20.7%); phone components (19.6%);automobiles (13.9%); casual wear (12.7%); leather shoes and sandals (12.5%);and tobacco (9.6%).
Meanwhile, some other products saw a decline of IIP compared tothe same period last year, such as iron and crude steel (12.3%); televisions(10.7%); fertiliser NPK (6%); fabrics made from man-made fibers (5.8%); mobilephones (5.4%); aquatic feed (4.9%); liquefied petroleum gas (LPG) (2.4%); andcrude oil exploitation (1%).
GSO also reported 61 out of 63 provinces and cities gainedgrowth, while the rest of two localities had IIP reduction in the first eightmonths of 2022.
Of which, some localities achieved a relatively high increase inIIP due to industrial production growth in the processing and manufacturingindustries; and electricity generation and distribution industry.
Meanwhile, some other localities had low manner in IIP growth rateor reduction in this index because the enterprises faced many difficulties fromthe impact of the pandemic.
Bac Giang province achieved the highest IIP of 51% during thefirst eight months.
Some other localities also had high IIP index due to strongrecovery in the processing and manufacturing industry; and electricityproduction and distribution, such as Lai Chau, Dak Lak, Son La, Quang Nam, andKhanh Hoa.
Besides that, many difficulties in production and businessactivities made Tra Vinh and Ha Tinh provinces witness a reduction in IIP at 27%and 15%, respectively.
The number of employees working in industrial enterprises as ofAugust 1, 2022 increased by 0.6% on month and 23% on year.
According to the Ministry of Industry and Trade, production inindustrial centres is showing positive signs of recovery. However, the lack ofhuman resources is one of the major obstacles that the enterprises are facingon the way of production recovery.
Pham Thi Tinh from the Vietnam Alliance for Industrial Supportsaid after a long break due to the pandemic, the skills of workers havedecreased, so the enterprises must spend time and expense on retraining. Thecost of labour in the industrial sector has increased, but it is still notenough to attract workers.
In addition, the Ministry of Industry and Trade said thatmanufacturing enterprises need to diversify markets importing raw materials aswell as exporting goods to avoid dependence.
There should be more policies to develop supporting industries inVietnam to gradually become self-sufficient in raw materials. This is the coreissue for sustainable industrial development in Vietnam.
The ministry also noted that it is necessary to continue changingindustrial restructuring in the direction of developing the manufacturingindustry and reducing processing and assembling for industrial products made inVietnam./.
source
