Hanoi (VNA) - The confidence of both domestic and foreign direct investment (FDI) enterprises has been significantly strengthened by the positive signs of industrial production growth in the early months of 2024.
At the regular government press conference on August 5, Deputy Minister of Industry and Trade Phan Thi Thang provided an update on the recovery and growth of the industrial sector. Notably, the positive results in attracting and disbursing FDI have contributed to enhancing domestic production capacity.
The Deputy Minister highlighted several key positive indicators in the industrial sector in the first seven months. The manufacturing Purchasing Managers' Index (PMI) saw a strong increase, and the sector’s overall value-added rose significantly compared to the same period last year. In particular, the consumption index for the processing and manufacturing industry grew, leading to a reduction in inventory levels compared to the previous year.
The representative of the Ministry of Industry and Trade noted that the industrial growth seen in the seven months, particularly regarding the processing and manufacturing sectors, reflects a very positive picture of domestic production. Industrial production has been recovering strongly from 2023, and this growth momentum is expected to continue. The processing and manufacturing industry has resumed its role as a growth driver, with broad-based industrial growth across most regions, especially in key industrial development areas. Domestic enterprises operating in the sector have shown a strong recovery and are well-positioned to seize new market opportunities in months to come.
"The confidence of domestic and foreign enterprises has been strongly reinforced by the positive growth in industrial production during the early months of this year," Thang stressed.
She attributed these positive results to the effective government support measures, decisive directives from the Prime Minister on public investment disbursement, and the implementation of key industrial projects. The government, along with various ministries, sectors, and localities, has closely collaborated with associations and enterprises to effectively leverage opportunities provided by free trade agreements (FTAs) that Vietnam has signed. This has come in the context of a recovering global market and positive growth recorded in export orders for Vietnam's key export sectors – such as garment and textiles, leather and footwear, electronics, and food processing.
The Deputy Minister went on to underscore the success of Vietnam's economic diplomacy, particularly with major trade partners like the US and China, which has helped strengthen investor and business confidence.
However, she also pointed out the challenges ahead. Despite improvements, the internal capacity of domestic industries remains weak. Long-standing bottlenecks in the industrial sector have yet to be resolved effectively.
Additionally, the domestic and international context poses challenges for domestic production in the coming months and years. The global and regional situation continues to evolve rapidly, with increasing geopolitical tensions and major power competition. Slow recovery with key trade partners, potential disruptions in global supply and production chains, and other risks could also present significant challenges.
The ministry, according to the official, encourages increasing the procurement of domestically produced goods, minimizing the use of imported products and materials that can be sourced locally, and actively seeking new markets for the country's key export sectors./.
