10:34 | 03/09/2019 Industry
(VEN) - Vietnam’s index of industrial production (IIP) rose 9.4 percent in the first seven months of 2019, continuing to be the bright spot of the Vietnamese economy.
The Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI) stood at 52.6 in July, up from 52.5 in June. Business conditions continued to be improved, creating motivation to boost production.
In July, Vietnam’s IIP experienced an increase of 5.9 percent over the previous month, and 9.7 percent compared to a year ago. In the first seven months of the year, the index recorded a rise of 9.4 percent. Although the seven-month figure was lower than the 10.7 percent increase in the same period last year, it was higher than its 7.2 percent growth in the same period in 2016 and 2017.
The manufacturing and processing sector continued to play a key role in driving growth across the whole industry with seven-month growth of 10.7 percent. In the reviewed period, electricity production and distribution ranked second with an increase of 10 percent, followed by water supply and waste and wastewater treatment with 6.6 percent, and the mining industry with 1.1 percent.
Some manufacturing and processing industries experienced particularly high growth, such as basic metals (40.6 percent), rubber and plastic products (15.6 percent), motor vehicles (11.4 percent), and textiles (11.1 percent).
According to the Ministry of Industry and Trade, textiles continued to grow well mainly due to the impact of free trade agreements to which Vietnam is a signatory, such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The Ministry of Industry and Trade has recommended that garment and textile businesses participate in value chains, because Vietnam’s cost advantages will gradually disappear.
In the remaining months of the year, the Ministry of Industry and Trade will focus on implementing solutions to maintain high growth momentum, encourage technology innovation and improve business competitiveness. In addition, mobilizing resources to complete key projects to increase production capacity is underlined.