Positive signals for second-half industry and trade

15:41 | 11/08/2018 Economy- Society

(VEN) - Industrial production and trade grew well in the first half of this year, creating good preconditions for further development and higher achievements in the remaining months of the year.

positive signals for second half industry and trade
The second half of 2018 is expected to be favorable for produce export development

According to the Ministry of Industry and Trade, in the first half of this year, the index of industrial production (IIP) increased 10.5 percent over the same period last year. Rapidly growing manufacturing, processing and electricity production and distribution industries contributed greatly to the industrial sector’s growth target approach.

In the first half, Vietnamese enterprises exported goods worth an estimated US$113.93 billion and imported commodities worth about US$111.22 billion, up 16 and 10 percent from the same period last year, respectively, generating a trade surplus of about US$2.7 billion, accounting for nearly 2.4 percent of the export revenues. Notably, domestic businesses earned export revenues of US$33.1 billion, up 19.9 percent from the first half of 2017.

Domestic retail sales totaled more than VND 2.12 trillion, up 10.7 percent from the same period in 2017.

In the second half of the year, the Ministry of Industry and Trade plans to further improve institutions and the business environment, mobilize resources for industrial development, and facilitate science and technology application and innovation in industrial enterprises. It also plans to promote the industry and trade sector’s restructuring, and continue to monitor market changes in order to carry out timely, flexible management and assist enterprises to develop production and trading activities.

Favorable factors for export growth are forecast for the second half of this year, as farm produce, forest product and seafood exports usually peak in the last several months of the year, and major industrial exports including textiles, garments, footwear and wooden furniture enter their export season in the second quarter of the year. In addition, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) are expected to come into force in 2019, developments that are expected to make Vietnam more attractive to foreign investors.

Taking advantage of these factors, the Ministry of Industry and Trade will pay heed to creating quality products for production, aiming at adding value to products and ensuring that products meet food safety and hygiene standards and are suitable to import market taste. The ministry will also strengthen measures to remove barriers and facilitate exports, especially agricultural and fishery exports to new markets, forecast and warn of trade protection measures threatening Vietnamese exports, and promptly find specific solutions to remove difficulties for enterprises and develop production, exports and markets.

Vietnam is expected to earn export revenues of US$236.6 billion in 2018, 10 percent higher than 2017, reach an IIP

of 13-14 percent and a 12.6 percent growth in added value for manufacturing and processing industries.

Viet Nga