The Index of Industrial Production (IIP) edged up 5.9 percent in October and 5.4 percent in the first ten months of this year. The increase was driven by an expansion in industrial manufacturing and processing, showing a recovery in the industry.

In the January-October period, industrial processing and manufacturing contributed 4.9 percent to the increase, while electricity production and distribution contributed 0.6 percent, and water supply, waste and liquid treatment, 0.1 percent.

The recovery was also seen in the employment index at industrial companies, recording a 4.4 percent year-on-year rise as of October 1.

A rise in the import of materials and machinery for production in the ten months further testified to the recovery of domestic production.

In addition, the inventory index of the manufacturing and processing industry as a whole increased by only 9.7 percent from the same period last year as of October 1. Of which, some sectors even saw remarkable declines: the inventory index of electronic accessories fell 74.9 percent; motor vehicle production, 48 percent; and cement, nearly 44 percent.

According to economist Vu Dinh Anh, the below-10 percent inventory index at this time is an optimistic sign for the economy in comparison to that from last year.

The Ministry of Industry and Trade forecast that the inventory will decline in the remaining months of this year because demand usually goes up in this period and businesses ship goods to fulfil their orders, particularly the apparel and footwear sectors.

At the ministry’s recent video conference, Deputy Minister Ho Thi Kim Thoa said that to meet the 2013 target, the ministry’s departments and agencies should focus on tapping the domestic market’s demands, while strengthening goods distribution systems nationwide.

Apart from maintaining traditional export markets and developing new markets, businesses need to propose detailed solutions to ease difficulties in production.

Boosting industrial production is considered as a key factor to develop the national economy as pointed out in the 2011-2020 Socio-economic Development Strategy, 2011-2015 Socio-economic Plan and Socio-economic Planning for 2013.

To create a breakthrough in industrial production, it is necessary to invest in key industrial centres as well as key industrial products. This may be the best solution to boost the country’s economy in the final months of this year and create momentum for the first quarter of next year.-VNA