Vietnam’s Industrial Production Shows Signs of Recovery

Statistics showed the industrial production index in April increased 5 percent over the same period last year. Particularly, mining industry expanded 2.1 percent while processing and manufacturing industries rose 5.5 percent.

 

Some sectors like clean coal, liquefied petroleum gas, television and automobile are still on the decline but the downward pace has slowed down. The increase of materials caused the country to run nearly US$1billion of trade deficit.

 

Mr Pham Duc Tien, Deputy Director of Hanoi Department of Industry and Trade, said industrial production recovery was on track given industrial data. The capital city posted industrial production growth of 4.7 percent.

 

Despite slight recovery, many sectors are struggling to regain growth momentums, particularly processing and manufacturing sectors. Currently, production indices of some industries like woven fabrics, metal, electronic parts, and consumer electronics, motor vehicles decline over the same period of 2012.

 

To enterprises to recover production, the Government has issued many support policies but not a few of them are yet to really come to life. In fact, even though banks announced to lower interest rates, companies still have to accept high rates and short maturity duration. For example, with short-time loans, traders of agricultural and aquatic products had to sell out their stockpiles to repay debts when they had not found out customers.

 

To support businesses to deal with difficulties, Deputy Minister of Industry and Trade Le Duong Quang requested the Electricity of Vietnam (EVN) to supply enough electricity to businesses. Besides, the Ministry of Industry and Trade asked enterprises to strengthen distribution systems to sell products at lowest prices to consumers to clear their inventories, upgrade technologies, use materials and equipment to reduce costs and promote production.