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| Technicians operate a frozen shrimp packing line at Cafatex Fishery Company. HCM City's industrial production index rose 5.5 per cent in May. — VNA/VNS Photo Thanh Vu |
HCM CITY (Biz Hub)— Industry and trade in HCM City have had five consecutive months of growth, even in the face of national economic challenges.
The city's policies on coping with inflation have contributed to steady growth.
In May, the industrial production index rose by 5.5 per cent against the previous month, and 4.4 per cent compared to the same period last year.
Of 26 industries, 22 of them improved capacity, especially in food processing, drinks, leather and shoes. Only ore mining, tobacco and automobiles were stagnant.
The storage index for the industrial sector also improved by 0.26 per cent.
"The major reason for this growth is that the Government and related industries have offered many solutions to overcome difficulties," said Nguyen Van Lai, director of the city's Industry and Trade Department.
Industrial production has also increased. By early May, total loans in the city had reached VND873 trillion (US$41 billion), an increase of 1.4 per cent against the previous month-long period and 15.1 per cent compared to the same period last year.
"However, the international and national economies face low demand and a high quantity of stockpiled goods. Lower foreign direct investment, equal to only 43 per cent in the same period last year, has affected industrial production," Lai added.
To cope with the situation, the textile and garment industry has expanded local markets by changing its business model but keeping the high quality of exported goods. For the first five months of the year, the industry grew by 5.4 per cent.
The food processing and drink industries have also earned good results.
Retail sales and turnover from services in the city totalled VND288 trillion ($133 billion), a year-on-year increase of 10.4 per cent. The figure showed that buying demand had increased.
To support enterprises, the Industry and Trade Department has organised meetings with enterprises. Nine meetings have been held with 100 enterprises thus far.
The department is also continuing to develop delivery channels to the city outskirts and processing zones. — VNS