Accelerating industrial production in year-end months

According to the Ministry of Industry and Trade (MoIT), in order to promote the growth of the industrial sector, enterprises in the sector need to improve competitiveness and remove bottlenecks to create momentum for production development.

IIP of 49 localities increased

According to statistics from the MoIT, the Index of Industrial Production (IIP) in the first seven months of 2023 was estimated to decrease by 0.7 percent over the same period last year (up 8.6 percent), of which those of the manufacturing sector decreased by one percent and mining sector by 1.2 percent; that of the power generation and distribution sector increased by 1.4 percent.

Accelerating industrial production in year-end months
The processing and manufacturing industry maintains steady growth -photo: Can Dung

Some key industries Grade II recorded high growth rates year on year, such as the manufacture of coke and refined petroleum products increasing by 12.2 percent, mining of metal ores and manufacture of tobacco products increasing by 8.6 percent, manufacture of rubber and plastics products increasing by 7.6 percent, etc.

During the seven-month period, the IIP of 49 provinces and centrally-run cities increased and that of 14 others across the country decreased. A number of localities with relatively high increase in the IIP indexes were attributed to the increase in the production indices of the processing and manufacturing, and electricity production and distribution sectors.

Despite the industrial recovery, the MoIT underlined the difficulties of enterprises in accessing capital, along with high bank interest rates and input costs, which have affected the production costs of domestic enterprises.

Solutions to maintain growth

Pham Tuan Anh - Deputy Director of the Vietnam Industry Agency under the MoIT, said that in the context that the Government and the business community are promoting economic recovery, supporting industries, processing and manufacturing industries such as electronics, textiles, footwear, furniture, etc., play a significant role in the development of the country’s industrial sector; and also in job creation, and improvement in its competitiveness ranking.

Nguyen Van - Vice Chairman of the Hanoi Supporting Industries Business Association (HANSIBA) said that in the context of export difficulties, businesses need to strengthen linkages and cooperation to consume each other’s products, thereby participating in the supply chains of large, foreign enterprises.

Economic expert, Dr. Nguyen Minh Phong also recommended that related agencies and parties should orient the development of processing industries to higher added value ones, instead of being too dependent on specific industries and fields.

To boost the development of the domestic industrial sector, the MoIT will strongly develop the domestic market, taking it as a pillar amid difficulties in the foreign markets. Specifically, the ministry will focus on programs to connect consumption of processed industrial products and agricultural products; continue to link domestic enterprises with the supply chains of FDI enterprises and large global enterprises.

Remarkably, after the Prime Ministers’ announcement on the planning on mineral exploration and exploitation, in the coming time, the MoIT will issue documents to bring these valuable minerals into exploitation and use, thereby, creating a new impetus for industrial development, and also helping Vietnam be self-sufficient in raw materials for the production of new products.

Viet Anh

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