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| Workers at Bao Long Company in northern Lang Son Province on a pump production line. Industrial production in Viet Nam is still dependent on the world economy and thus vulnerable to global fluctuations. — VNA/VNS Photo Hoang Hung |
HA NOI (Biz Hub)— The industry and trade sector of Viet Nam expects the index of industrial production (IIP) to grow to 6.3 per cent this year as the world economy recovers, helping boost exports.
Restructuring will continue to be a priority this year, according to the Ministry of Industry and Trade.
Industrial production showed signs of recovery in 2013, with the IIP growing by 5.9 per cent and inventories decreasing. However, the macro-economy did not fully stabilise, consumers continued to budget carefully and free trade agreement negotiations remained unfinished. In addition, natural disasters and diseases presented a continued threat.
Deputy Minister Le Duong Quang said that the industrial production of Viet Nam was still dependent on the world economy and thus vulnerable to global fluctuations.
He added that technology remained low-level and the support industries did not receive adequate investment, meaning the country depended on imports for many raw materials.
Nguyen Tien Vy, director of the ministry's Planning Department, said that the industry and trade sector would hasten restructuring, especially of State-owned enterprises, to enhance efficiency and competitiveness.
He added that technology should play a bigger role in production and the localisation rate should be increased.
According to the Viet Nam Chamber of Commerce, 42.5 per cent of companies planned to expand business in 2014 while 50.7 per cent maintained the size of their businesses.
This suggested that enterprises felt a better business year was coming in 2014, said Pham Thi Thu Hang, the VCCI's general secretary.
Hang suggested enterprises improve their risk management capacity in order to take advantage of the Government's support policies.
Chairman of the Viet Nam Mechanics Association, Nguyen Van Thu, said that preferential capital sources should be made accessible to enterprises to help them boost production. — VNS