Bright prospects ahead for Vietnam’s industrial sector

16:20 | 21/01/2018 Industry

(VEN) - Strong growth of some industries, especially the manufacturing and processing sector, will create a solid foundation for strong development in 2018.

According to a report compiled by the Ministry of Industry and Trade, the index of industrial production (IIP) expanded by 9.3 percent in the first 11 months of 2017, much higher than the 7.4-percent growth of the same period in 2016. The manufacturing and processing sector continued to be a leader with high growth in every month of the year.

The garment and textile sector maintained moderately good growth in the first 11 months of 2017. Due to the increasing demand in the domestic market in the last months of the year, the sale of electronic products, computers and electrical equipment also grew.

Other sectors such as electricity production and distribution; water supply and waste and wastewater treatment also saw high growth in the first 11 months of 2017, contributing to a bright picture for Vietnam’s industry.

The Ministry of Industry and Trade attributed the positive results of Vietnam’s industry in 2017 to measures it adopted to promote trade and production activities.

In 2018, the IIP is expected to expand by 8-8.5 percent. The Ministry of Industry and Trade will continue to restructure industrial production in order to create competitive products labeled national brands and promote participation in the global value chain. Increasing the proportion of manufacturing and processing and reducing the proportion of assembly, reviewing mechanisms and policies, removing difficulties for businesses to increase their competitiveness, promoting technological innovation, improving production processes, actively participating in the fourth industrial revolution to increase labor productivity are mentioned as necessary.

The Ministry of Industry and Trade will direct units to promote the restructuring of some groups and corporations in major sectors, such as beverage production, chemicals, electricity, mineral-coal, oil and gas.

In addition, it plans to closely monitor market developments, create a competitive environment and protect the interests of domestic manufacturers in such fields as steel, automobile, fertilizer and chemicals.

The manufacturing and processing sector continued to attract the greatest investor interest in the first 11 months of 2017, with 830 projects and total registered capital of nearly US$15 billion, accounting for around 45 percent of total FDI in industry.

Bui Viet