IIP sees lowest growth rate in five months: GSO

The IIP was the lowest in Viet Nam in the first five months of this year. — Photo ninhbinh.gov.vn

The national index of industrial production (IIP) in the first five months rose 9.7 per cent year-on-year, higher than the growth rate of 6.6 per cent of the corresponding period last year, according to the General Statistics Office (GSO).

However, this was the lowest growth rate in IIP since the beginning of this year, said the office, adding that the year-on-year growth rate was 20.4 per cent in the first month of this year, 15.2 per cent in the first two months, 11.6 per cent in the first three months and 11.4 per cent in the first four months.

GSO’s industrial economic experts said the reduction in the IIP growth rate was partly due to the plunge in production in the mining sector. The IIP of the mining sector in the first five months fell 7.6 per cent year-on-year. The figure of the January-May period in 2017 reduced by 2.2 per cent.

In addition to this, some other major sectors also saw a downward trend in their IIP growth rate during the first five months.

The manufacturing and processing sector, accounting for 90 per cent of the national industrial production, had a year-on-year increase of 11.8 per cent, also lower than the two-month, three-month and four-month rates of 15.5 per cent, 14.1 per cent and 12.5 per cent, respectively. The IIP of the electric production and distribution sector had a year-on-year surge of 10.6 per cent from January to May.

Meanwhile, the IIP of the electronics, computers and optical products sector gained a year-on-year increase of 18.7 per cent during the period, but the figure in May rose only 2.2 per cent month on month because Samsung Electronics Co Ltd reduced its production in April and May.

The GSO said some major industrial products with high growth rate in IIP had contributed greatly to the growth of the national IIP. Surges were also recorded in crude iron and steel (40 per cent), fabric (25 per cent), feed for aquaculture (17.7 per cent), sugar (15.5 per cent), powdered milk (13.6 per cent), and television (12.4 per cent).

Several other areas, however, saw low growth or reduction in industrial production, including liquefied natural gas (up 1 per cent), fresh milk (up 0.9 per cent), mobile phone (up 0.8 per cent), and auto (up 0.6 per cent), while crude oil was down 10.2 per cent and urea fertiliser down 1.6 per cent. — VNS