In the first six months of this year, indicators of industry, export, and total goods and service retail sales were all down against the same period last year, which has posed a great burden for the Industry and Trade sector to complete their targets in the last six months this year.
Summary report
At the online meeting, which was held on July 8 in Hanoi to review works in the firs six months, Deputy Minister of Industry and Trade, Bui Xuan Khu said that despite the National Assembly had lowered targets, enterprises of the industry and trade sector will have to make great efforts to fulfil the full-year target in the last six months this year.
In the first six months this year, the industrial production value was estimated to have reached VND324.2 trillion, up 4.8 percent on year. In order to make up for the deficit in the first half, the industry sector must grow between 15 percent and 16 percent in the second half, said Deputy Minister of Industry and Trade Bui Xuan Khu.
The growth rate of the industrial production values of almost cities and provinces were lower than those of the same period last year. Ho Chi Minh City, where often boasts the largest industrial production value, had the value grown only 3.8 percent in the first six months; followed by Hanoi with a growth rate of 3.9 percent, which is lower than the national average rise.
Many industrial products showed signals of recovery in the second quarter but gained modest growth rate compared to that of the same period last year, particularly apparel, footwear, paper, auto and fertilizer.
In term of exportation, the hardest industry of the industry and trade sector, export revenue reached US$27.612 billion in the first six months this year, down 10.13 percent on-year, which means a monthly earning of US$4.6 billion. In a bid to ensure the growth rate of 3 percent this year, the export revenue should reach a monthly average of $6.2 billion in the second half this year.
The trend of trade deficit was increasing in the second quarter. In the first quarter, the country enjoyed a trade surplus of US$1.5 billion but faced a trade deficit of $1.3 billion in the second quarter. If such a deficit is maintained the last six months, it will drive up the national trade deficit to $10 billion this year. Therefore, synchronic solutions are essential to curb the trade deficit.
Deputy Minister Bui Xuan Khu said that the government had taken some drastic measures to deal with difficulties facing by enterprises upon economic decline, including timely restructuring investment and development capital, providing subsidized loans, and flexibly regulating monetary policies. Taking advantages of the government’s demand stimulus package, many enterprises had restructured their business and trading and speeded up pace of many investment projects, which had resulted in signals of recovery in the paper, apparel and footwear industries in May and June, driving up the industrial production value.
Major targets
Minister of Industry and Trade, Vu Huy Hoang said that, in order to ensure the targets set by the government, the industry and trade sector must complete four major targets. Firstly, it should continue to intensify investment in projects that are scheduled to be completed and to become operational in the 2008-2009 period, particularly power source and power grid projects, to avoid power shortage, as well as projects to enhance capacity of producing goods for export in a bid to lower the trade deficit. Secondly, it must deal difficulties and boost up exports in order to ensure an export growth rate of 26 percent this year and curb trade deficit at less than 30 percent. Thirdly, the sector should intensify supervision, inspection, and management market developments so as to ensure supply of key goods items with stable prices, determine to prevent speculation and price fever, and strictly deal with activities of speculation, inappropriate price hikes and trade frauds. Fourthly, it should boost up international cooperation and integration, and bilateral and multi-lateral negotiations in a bid to expand market, facilitate enterprises to develop their production, trading and international cooperation.
Addressing the meeting, Deputy Prime Minister Hoang Trung Hai said that the industry and trade sector need to grow 25 percent; however, by this time, the growth of trade deficit is faster, which requires exports to grow 28 percent to stabilize the trade balance.
In order to deal power shortage of production, the prime minister has asked for no power shortage among production and households regardless of any reasons. The state-owned Electricity of Vietnam Group (EVN) must speed up maintenance to re-operate breakdown power plants. Meanwhile, the state-owned Vietnam National Oil and Gas Group (PetroVietnam) must shorten time of trial run at Ca Mau 1, Ca Mau 2 and Nhon Trach 1 power plants.
In order to ensure crude oil production of 16 million tonnes this year, Deputy Prime Minister Hoang Trung Hai requested the Ministry of Industry and Trade to take drastic measures to ensure stable and safe production at operational oil fields. Regarding the Dung Quat oil refinery, which became operational in February this year, the Ministry of Industry and Trade must keep a close watch on its trial run to ensure safe and smooth operation.
In a bid to stabilize market, Mr Hai asked for tighter control over market management and enterprises’ distribution network. The Ministry of Industry and Trade must devise regulations to control essential goods trading.
The deputy prime minter said that it is very hard to fulfil the targets in the last six months; therefore, state management agencies must continue to admit and quickly deal with proposals by enterprises which are in a dire need for the state support to fulfil the targets.
Huong Giang
Vietnamese
