Industrial production keeps growing

A welding workshop of Thaco Kia

Industrial production is accelerating towards year’s end while orders from key markets are increasing. Economists have seen the recovery of consumer demand, which promises a better situation of the world economy. Many domestic companies have benefited from the Government’s support policies to invest in technological innovation and business restructuring. Domestic production, therefore, is improving. Many domestic companies have already received new orders for the first quarter of 2024.

According to the Vietnam Textile and Apparel Association (VITAS), textile and garment exports slowed down from the end of the first quarter to the middle of the third quarter of 2023, but have shown signs of acceleration in the fourth quarter following a decrease in global inventories. The VITAS expects that the Government’s appropriate policies will create favorable conditions for textile and garment companies to boost exports, especially in the context of increased orders in the fourth quarter of 2023.

In the manufacturing sector, both factories of the An Tien Industries Joint Stock Company in Yen Bai Province’s Southern Industrial Zone, one producing calcium carbonate CaCO3 and one producing plastic additives, are operating at their full capacity. The company expects its 2023 sales to exceed VND903 billion, and the export value to reach nearly US$36.5 million.

In Ho Chi Minh City, the sales of industrial products in major sectors have increased. Industrial manufacturing businesses are striving to fulfill the annual plan while promoting multi-sector cooperation to add value to brands and resources.

To promote year-end industrial production and create momentum for 2024, the Ministry of Industry and Trade will continue resolving difficulties for businesses to boost production.

The General Statistics Office of Vietnam (GSO) proposed that the Government continue connecting domestic businesses to the supply chains of major global firms investing in Vietnam. The GSO also proposed further support through simplified administrative procedures and credit access facilitation for businesses, especially small- and medium-sized enterprises, to recover and expand production

Localities should intensify demand stimulus and sales promotion programs to increase the domestic purchasing power while businesses in the food, textile, garment, leather and footwear sectors face export difficulties. More supply-demand connection exhibitions should be organized to help industrial businesses seek partners and outlets for their products.

For their part, processing and manufacturing businesses wish that electricity, water and fuel prices will be stabilized to prevent the growth of production costs. They also expect the Government to apply appropriate policies to stimulate the domestic demand to help them increase sales. Companies meeting financial difficulties, especially small- and medium-sized enterprises, hope that they will be offered a lower interest rate and easier access to loans.

Viet Anh