Industrial production to soar towards year-end

10:22 | 30/10/2015 Industry

(VEN) – Industrial production in the first nine months of 2015 grew 9.8 percent - a higher growth compared with the same period last year, and showed positive signs through increased sales and decreased inventories. The Ministry of Industry and Trade (MoIT) forecast that industrial production would continue growing towards the year’s end.

Industrial production to soar towards year-end

Domestic businesses have taken active measures to promote trade and production - Photo: Can Dung

According to MoIT’s Planning Department, in the first nine months, sales in the processing and manufacturing industries grew 13.2 percent (in the same period of 2014 compared with that of 2013, the growth was 8.9 percent). For example, sales of electronic products, computers and optical devices grew 85.7 percent; motorized vehicles up 27.5 percent; and metals up 23.7 percent.

Inventories were maintained at a lower level compared with 2014. Specifically, the inventory index of the processing and manufacturing industries decreased from 10.9 percent in the first three months to 9.9 percent in the first nine months, 1.7 percentage points lower compared with the same period last year (for example the inventory index of chemicals and chemical products decreased by 2.4 percent; electrical appliances down 8.1 percent). MoIT’s Planning Department Director Nguyen Tien Vy said, “Monthly rises in sales of the processing and manufacturing industries showed that industrial production continued to develop.”

MoIT forecast that industrial production would continue growing towards the year’s end thanks to favorable conditions. Specifically, domestic companies tend to imports more materials for production; textile, garment, leather, footwear, and electronics businesses have received orders that allow them to maintain production towards the year’s end. Moreover, domestic businesses have taken active measures to promote trade and production.

It is forecast that in 2015 the added value of the industrial sector will grow 7-7.5 percent compared with last year, contributing to realizing the 6.3 percent annual gross domestic product (GDP) growth target.

To make these forecasts come true, MoIT said it was necessary to restructure industrial production in order to increase the technological content and local value of products, continue to promote production and seek new markets for industrial products to increase sales and reduce inventories. Notably, domestic industrial businesses need to reduce manufacturing and assembling for foreign firms.

Deputy Minister of Industry and Trade Cao Quoc Hung said industrial production must be developed in-depth in order to create products of nationally recognized brands that can join global value chains. It is necessary to intensify the attraction of investment into Vietnamese support industries to ensure a sufficient supply of input materials for domestic industrial production, while at the same time tightening the links between domestic businesses.

MoIT required economic groups to concentrate on maintaining production towards the year’s end. The Electricity of Vietnam Group should be willing to operate its power plants at their full capacity to meet manufacturer demand for electricity during the dry season. The Vietnam National Oil and Gas Group needs to maintain a high level of gas supplies for gas turbine power plants. The Vietnam National Coal and Mineral Industries Group needs to ensure sufficient and uninterrupted coal supplies for power plants.

Duy Minh

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