Light Industry Floats, Heavy Industry Sinks

 

Steel industry. In April 2014, crude steel output reached 284,800 tonnes, down 0.7 percent over the same period; laminated steel output is estimated at 316,700 tonnes, an increase of 24.3 percent compared to April 2013; angle steel output is estimated at 332,800 tonnes, an increase of 12.6 percent over the same period. Generally in the 4 months, crude steel output reached 857,000 tonnes, down 11.0 percent over the same period; laminated steel output reached 1,080,300 tonnes, up 22.4 percent over the same period; steel bars and angle steel reached 1,100,100 tonnes, up 2.6 percent over the same period. Imports of steel of various kinds from the market in April fell both in volume and value. Overall, steel imports decreased 1.6 percent in volume and 7.6 percent in value. However steel products increased by 9.2 percent in value.

 

Fertilizer and chemical industry. In April 2014 it is estimated that urea output reached 175,300 tonnes, an increase of 18.2 percent compared to April 2013; NPK fertilizer output reached 206,300 tonnes, down 1.4 percent over the same period. Generally, in the first 4 months of 2014, urea production is estimated to reach 739,000 tonnes, up 8.9 percent compared to the same period in 2013; NPK fertilizer reached 724,200 tonnes, decreasing by 2.8 percent over the same period; phosphate fertilizer (Vietnam Chemical Corporation) reached 544,900 tonnes, up 6.7 percent over the same period; DAP fertilizer (Vietnam National Chemical Corporation) reached 81,100 tonnes, down 9.3 percent. Import of fertilizers in the first 4 months of 2014 decreased by 5.5 percent in volume and 26.5 percent in value.

 

Since early 2014, the domestic fertilizer market has not seen much fluctuation thanks to abundant supply of fertilizers. Plants maintain stable production, supply and ensure sufficient quality fertilizers for farmers to produce winter-spring crop. However, businesses producing fertilizer in the country are still facing difficulties due to fierce competition with large amounts of cheap fertilizer whose quality has not yet been examined imported from China.

 

Mechanical engineering, electric and electronic products. The purchasing power of electrical goods in general is slightly lower than consumption in the Lunar New Year period. Since April, the weather in Ho Chi Minh city has turned hot but purchasing power of hot items such as air conditioner, fan, fridge has yet to change. Currently, electrical goods market serving hot season have not had promotions and stimulus activities.

 

Automobile market has many positive signs compared to the same period last year. The number of visitors coming to see and buy cars has increased. However, the needs of customers mainly concentrate in popular car segment pricing at less than VND1-2 billion. Production of cars in the first 4 months is estimated at 32,900, an increase of 16.7 percent over the same period in 2013.

 

Garment industry. In April 2014, the situation of some of the main products of the textile industry are as follows: textile products from natural fibres decreased by 4.4 percent; usual clothing increased by 12.2 percent, in which clothes of various kinds (Vietnam Textile and Garment Group) increased by 1.5 percent; woven textile from synthetic fibres or artificial fibres increased by 6.3 percent compared with April 2013. Generally in the first 4 months of 2014, exports of textiles and garments reached US$5,936 million, increasing by 20.0 percent compared to the same period. Some main products of the textile industry maintain the same growth rate over the same period. Specifically, products from natural fabrics increased by 13.5 percent; usual clothes 12.7 percent, in which clothes of various kinds (Vietnam Textile and Garment Group) increased by 4.1 percent over the same period; woven textile from synthetic fibres or artificial fibres decreased by 3.1 percent.

 

Tobacco industry. In April 2014, production of all types of tobacco is estimated at 497.4 million bags, down 2.4 percent compared with April 2013. Generally, in 4 months, production of all types of tobacco is estimated at 1.765,9 million bags, down 1.5 percent over the same period. In this month, production and business situation of enterprises in the country encounter difficulties because tobacco products on the market are attached with health warnings with pictures, which has a certain impact to the consumption of tobacco. Besides, that cigarette smuggling increased in the first months of the year has caused difficulties for domestic producers.

 

Beer, alcohol and beverages. Production of beer in April is estimated at 240.8 million litres, an increase of 26.5 percent over the previous month and 5.5 percent compared with April 2013, (in which Hanoi beer is estimated to reach 39.9 million litres, an increase of 113.7 percent; Saigon beer is estimated to reach 107.3 million litres, an increase of 19.5 percent over the previous month). Generally, in 4 months production of beer of various kinds is estimated at 873.5 million litres, an increase of 4.5 percent over the same period.