15:26 | 12/07/2015 Trade
(VEN) - Almost all key categories of goods in the industry and trade sector have achieved outstanding results, creating an important premise for the completion of bigger targets in the last half of this year.
Industrial production increases
Industrial production was the bright point of the industry and trade sector in the first half of this year. According to the Ministry of Industry and Trade, industrial production index increased by 9.6 percent compared to a year ago. Almost all sectors recorded a high growth such as the manufacturing and processing sector with 10 percent, mining with 8.2 percent, power production and distribution with 11.2 percent, and water supply and wastewater treatment with 6.4 percent.
Thai Nguyen ranked first among the cities and provinces in terms of industrial production index with an increase of more than 200 percent thanks to the completion of the extended Samsung Thai Nguyen plant project, followed by Quang Nam with 27.3 percent, Hai Phong with 15.9 percent and Da Nang with 11.2 percent.
Electricity was one of the industrial sectors making significant contributions to a high growth of industrial production index in the first half of the year when ensuring sufficient power for trade, production and domestic use. Electrical additional charges strongly increased in May and June. Vietnam Electricity (EVN) Deputy General Director Nguyen Tai Anh said that sometimes the demand for power increased to 531.28 million kWh a day, higher than an expected level of 490 million kWh a day. EVN’s power output reached 78.74 billion kWh in the first half of this year, an increase of 12.35 percent compared to a year ago, equal to 48.81 percent of the yearly plan.
To ensure power supplies, EVN will put two big power projects into operation including the Lai Chau and Huoi Quang hydropower plants.
Minister of Industry and Trade Vu Huy Hoang said that thanks to close directions of the government, determination and efforts of ministries, departments and localities and effects of the Buy Vietnamese Goods Campaign, industrial production has achieve outstanding results. A high growth of industrial production index will create an important premise for the completion of bigger targets in the remaining months of the year.
The domestic market saw a sign of recovery in the first half of the year when the purchasing power increased as a result of curbed inflation and stable prices. Total retail sales and service revenues reached more than VND1,572 trillion, an increase of 9.8 percent compared to a year ago.
Exports to reach targets
According to the Ministry of Industry and Trade, export turnover reached US$77.7 billion in the first half of this year, an increase of 9.3 percent compared to a year ago. The processing sector ranked first with US$60.7 billion in export turnover, a year-on-year increase of 18.8 percent.
The Ministry of Industry and Trade’s Agency of Foreign Trade Director General Phan Van Chinh said that exports faced difficulties in the first quarter and saw a sign of recovery in the second quarter of this year. This result was seen as a quite high growth compared to other countries in Asia. Apart from Japan who achieved a growth of eight percent in export turnover, China, Indonesia and the Republic of Korea saw negative growth. The situation was due to fiercer competition between exporting countries.
“Exports will benefit by the signing of free trade agreements such as the Eurasian Economic Union-Vietnam Free Trade Agreement (EEUV-FTA) and the Korea-Vietnam Free Trade Agreement (KVFTA). Therefore, the export growth of 10 percent and the trade deficit of five percent assigned by the National Assembly would be realized,” Phan Van Chinh said.
Can Tho Department of Industry and Trade Deputy Director Duong Nghia Hiep said that rice and seafood were key exports in Can Tho and the Mekong Delta. However, they have faced difficulties in terms of markets and prices in recent years. Therefore, many workshops to promote links and exchange market information should be organized in the coming time to seek new markets for businesses.
Minister of Industry and Trade Vu Huy Hoang said, “Vietnam signed the KVFTA and the EEUV-FTA on May 5 and May 29. After the agreements take effect, businesses need to catch up opportunities to increase their exports to these potential markets.”