This month alone the IIP is estimated to have increased 5.6 per cent over last September, said the Ministry of Planning and Investment (MPI).—VNA/VNS Photo

HA NOI (Biz Hub)— The country's index of industrial production (IIP) saw a year-on-year increase of 5.4 per cent in the first nine months of the year, signalling a promising sign in the economic slowdown.

This month alone the IIP is estimated to have increased 5.6 per cent over last September, said the Ministry of Planning and Investment (MPI).

The Index is calculated using four groups: the mineral exploitation, processing and manufacturing industry, electricity production and distribution, water supply, and waste management and disposal.

The IIP in mineral exploitation this month is estimated to decrease 5.1 per cent from the previous year, while the processing and manufacturing sector shows a 8.5 per cent increase. The two sectors have a large impact on the overall IIP.

Electricity production and distribution, as well as water supply industries, saw surges of 9.4 per cent and 11.2 per cent respectively.

The Ministry of Industry and Trade said both heavy and light industries faced difficulties.

For example, the garment and textile sector has had to cope with fierce competition from neighbouring countries in its domestic market, though they had export contracts for the whole year.

The paper sector has also been struggling with competition from imported products.

The ministry said paper production last month rose 10.4 per cent while its inventory increased 25 per cent against the same period last year.

It said its would closely supervise the implementation of set targets and measures, especially giving attention to exploiting the domestic market and strengthening the distribution system, while developing a new export market.

The Finance Ministry said it will carry out inspections to detect smuggled goods in purchasing activities.

In addition, it will adjust the management policies on imported items and create favourable conditions for investment.

The MPI also revealed that more than 42,000 businesses closed down or suspended their operation in the January-September period.

The ministry said in the nine-month period, of that figure, 6,700 enterprises dissolved completely, a 2 per cent decrease over the same period last year.

However, the number of firms suspending operations rose 13 per cent against the same period last year, reaching 35,700.

It said the figures show that the economic situation is difficult.

The country saw 11,300 businesses resume operation between January and September, an encouraging result for the economy.

As many as 4,000 of these enterprises were involved in wholesale, retail, and auto and motorbike repair, 1,900 were in construction and 1,600 in manufacturing.

The MPI indicated that the country established 19,300 new companies in the third quarter of this year with total registered capital of VND87.8 trillion (US$4.18 billion), a decrease of 17 per cent in the number and 23 per cent in capital over the previous quarter.

The total number of newly established firms for the first nine months of the year was 58,200 with capital of VND281.3 trillion ($13.3 billion), an 11 per cent increase in term of quantity but a 22 per cent decrease in capital from last year. — VNS