Hanoi (VNA) – Vietnam’s industry sector has seen continuous recovery with the index of industrial production (IIP) expanding 6% year-on-year in the first four months of this year, according to the Ministry of Industry and Trade (MoIT).
In April alone, the IIP rose 0.8% over the previous month and 6.3% compared to the same period last year. Manufacturing-processing industry recorded the highest growth, with a year-on-year increase of 7% in April and 6.3% in the first four months of this year, the MoIT said.
Notably, the processing and manufacturing industry increased by 6.3%, contributing 5.5 percentage points to the overall increase. The electricity production and distribution industry climbed by 12.3%, contributing 1.1 percentage points; water supply, waste and wastewater management and treatment activities up 5.3%, contributing 0.1 percentage points.
The positive results of enterprises were reflected in the export turnover of processed and manufactured industrial goods in the first four months of the year with growth of 14.5%, earning about 104.65 billion USD. Many key export items saw high growth such as cameras, camcorders and components (63.5%); computers, electronic products and components (34.9%); plastic products (29.6%); wood and wood products (23.7%); iron and steel of all kinds (20.7%); machinery, equipment, tools and other spare parts (10%); transport vehicles and spare parts (9.9%), among others.
Notably, industrial production rose in key localities, and 54 saw an increase in industrial production index over the same period last year, including Phu Tho (29.6%); Bac Giang (24.1%), Ha Nam (15.5%), and Binh Phuoc (15.2%), among others.
On the other hand, the electricity production and distribution industry index in some localities decreased sharply compared to the same period last year such as Hoa Binh (51.7%), Son La (46.2%), Quang Ninh (23.7%), Lai Chau (16.6%).
Some key industrial products witnessed a decline from the same period last year, such as liquefied petroleum gas (20.4%), televisions (11.1%), iron and crude steel (7.9%), phone components (7.2%), and mobile phones (2.8%).
A MoIT representative said that the results showed the efficiency of Government support measures and direction from the Prime Minister in speeding the disbursement of public investment capital and the implementation of major industrial projects, as well as efficient FDI attraction.
Meanwhile, the recovery of the world market has helped increase the new export orders, the representative said, adding that the capacity of domestic firms has been strengthened thanks to the Government support policies, the stable domestic macro-economic situation, and the world market’s recovery.
However, the MoIT warned of risks in industrial production and trade activities, including incomprehensive IIP recovery among the localities and strong fluctuations in exchange rates.
According to the MoIT, businesses are in need of support measures to connect them with relevant ministries and sectors, as well as solutions to cope with their difficulties in capital and interest rates and assistance in administrative procedures.
The ministry also underlined the need to support businesses in capital, especially that with low interest rate to help them recover and grasp opportunities in 2024. Policies on debt rescheduling and extending debt repayment time will be helpful for businesses to ensure temporary capital to boost production and business activities, he stressed.
The ministry said it will continue speeding up the disbursement of public investment capital and major projects in the fields of electricity, oil and gas, manufacturing-processing, and mining, thus creates market capacity for businesses to develop.
The ministry also pledges to provide solutions to remove difficulties facing businesses and connect them with the supply chains of foreign firms investing in Vietnam./.
