Inventory reduction sending out recovery signs for industrial production

Vietnam’s industrial production is seeing positive signs for recovery as the consumption index of the entire processing and manufacturing sector increased and the inventory index reduced in the first half of this year.

Illustrative photo (Photo: VNA)
Illustrative photo (Photo: VNA)

Hanoi (VNA) – Vietnam’s industrial production is seeing positive signs for recovery as the consumption index of the entire processing and manufacturing sector increased and the inventory index reduced in the first half of this year.

According to the Ministry of Trade and Industry (MoIT), the consumption index grew by 10.8% year-over-year, and the inventory one in the six months was 76.9%, as compared with the 83.1% recorded in the same period last year.

In the northern province of Nam Dinh, although the consumption index of the processing and manufacturing industry dropped by 3.19% year-on-year, some industries experienced increases, including textile (16.44%), and garment (18.66%). Meanwhile, its inventory index had contracted by 6.52% as of June 30.

Vinh Phuc also saw its inventory index decline by 11.79% year-on-year. Industries with decreased inventory indexes included textile (10.31%), unclassified machinery and equipment manufacturing (15.67%), the production of leather and related products (1.22%), and rubber and plastics production (4.64%).

Economists believed those signs, together with the recovery momentum and stable macroeconomic situation, will create growth momentum for the remainder of the year.

To further remove difficulties for industrial production, experts said it is necessary to maintain macro-economic stability, control inflation, consolidate confidence among people and businesses in production and business activities, prioritise credit management in production and business sectors that would create growth motives, control forex rates appropriately, and enhance the adaptability, resilience and safety of the financial and banking system.

Production and business facilities need to keep tabs on market developments to expand operations and find new customers, strengthen production - consumption chains, and ensure the inventory-consumption balance.

Pham Tuan Anh, Deputy Director of the Department of Industry under the MoIT, said it is important for associations and industries to strengthen connectivity between enterprises and promote the consumption of each other's products.

He also urged enterprises to keep restructuring themselves and reducing production costs to enhance their competitiveness, and flexibly adapt to market developments./.

VNA

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