Industrial production slows down in 2016

Hanoi (VNA) – Vietnam’s index of industrial production (IIP) rose by 7.5 percent this year, much lower than the 9.8 percent growth seen in 2015.

The main reason is the strong decline in the mining industry of around 6 percent, the General Statistics Office (GSO), which released the data, said.

On a positive note, the processing and manufacturing sector, which accounts for 75 percent of total industrial production in the country, increased by 11.2 percent. While electricity production and distribution saw a growth of 11.5 percent, the water supply and waste treatment sector rose 7.2 percent.

Industrial products that posted high IIP this year include televisions (up 70 percent), steel (up 27 percent), automobiles (up 22 percent), animal feed (up 18.3 percent), cement (up 15 percent) and milk powder (up 13 percent).

The IIP, however, declined for products such as mobile phones (down 11 percent), crude oil (down 10 percent), sugar (down 8.3 percent) and fertiliser (down 6 percent).

Among the provinces and cities that saw significant industrial production growth are the central province of Quang Nam at 30 percent; the northern port city of Hai Phong and northern Thai Nguyen province at 24 percent and 17 percent, respectively; Hanoi at 7 percent; and HCM City, the southern hub, at 7.5 percent.

Despite a lower industrial production growth, there was an 8.4 percent rise in the consumer index of the manufacturing and processing industry and an 8.1 percent increase in its inventory index, the lowest level in the past few years, which is proof that the national economy is well on track to recovery and development, Nguyen Bich Lam, head of GSO, said.

The Ministry of Industry and Trade has already mapped out next year’s development plan for the industrial sector, and forecast an 8 percent rise in industrial production against this year. — VNA