Industrial production up 7.2%, lower than 2015

Monday, Aug 01, 2016 09:41

Viet Nam's index of industrial production (IIP) in the first seven months of this year rose 7.2 per cent year-on-year, the General Statistics Office (GSO) announced. — Photo
HA NOI (Biz Hub) — Viet Nam's index of industrial production (IIP) in the first seven months of this year rose 7.2 per cent year-on-year, the General Statistics Office (GSO) announced.

The growth rate was lower than the 10 per cent registered during the same period last year.

The processing and manufacturing sector, which accounts for more than 70 per cent of the total value of the industrial sector, grew 9.9 per cent in the first seven months, electricity production and distribution saw an increase of 11.6 per cent, while the mineral industry decreased 2.7 per cent.

Economists from GSO said the low growth rate was due to the decline in product consumption as the consumption index in June increased by only 0.7 per cent over May, while May's consumption index grew 5.2 per cent over April.

Industrial products saw high growth, such as television which rose 79 per cent, rolled steel grew 23.5 per cent, automobiles increased 22 per cent and animal feed jumped 19.7 per cent, besides cement that rose 15.7 per cent and liquefied petroleum gas (LPG) by 14.8 per cent.

Meanwhile, industrial output of motorbikes and leather and footwear fell 1.2 per cent and 1.3 per cent, respectively, while sugar, crude oil and mobile phones declined 5.5 per cent, 6.8 per cent and 8.5 per cent, respectively.

According to GSO, the capacity for improvement in industrial production in the rest of this year was limited as the average inventory rate in the first six months was 70 per cent, declining only 1.5 per cent compared to the previous five months.

Provinces where the IIP saw high growth were Binh Duong at 8.5 per cent; Dong Nai at eight per cent; Hai Phong at 16 per cent; and Da Nang at 11.5 per cent; besides Bac Ninh at 9.7 per cent; HCM City at 7.1 per cent; and Ha Noi at 6.8 per cent.

Southern region

The southern region's industrial production expanded by 7.5 per cent year-on-year in the first half of this year, according to a report by the Ministry of Industry and Trade.

Retail sales and services were worth VND922 trillion (US$41.9 billion), an increase of 6 percent.

The region's exports were worth $43.8 billion, an increase of 11 per cent.

This year the manufacturing and trading sectors set themselves targets of maintaining higher industrial growth than the national average and retail and services revenues of $89 billion, or 13.6 per cent higher than last year.

The export targeted is $98.8 billion, an increase of 14.2 per cent.

The figures were tabled at a conference organised last week by Binh Duong Province's Department of Industry and Trade on speeding up administrative reforms and strengthening connectivity and co-operation for integration and development.

The conference was attended by Deputy Minister of Industry and Trade Do Thang Hai and the leaders of the 20 provinces and cities in the south.

Officials from HCM City's Department of Industry and Trade have urged southern provinces and cities to help sell 100,000 tonnes of salt produced by farmers in its coastal district of Can Gio.

Pham Thanh Kien, director of the department told the conference that the city faces a challenge in finding buyers.

In the recent salt season 140,000 tonnes were harvested in Can Gio but only 40,000 tonnes were sold to wholesalers.

To sell salt and other stockpiled items, there should be co-operation between provinces and cities in the region, he said. — VNS

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