3:26:38 PM | 7/8/2005
Vietnam Maps out 8 Measures to Boost Industrial Sector
To boost industrial production, Prime Minister Phan Van Khai and Deputy Prime Minister Vu Khoan on April 15 chaired a conference in
According to Mr Tran Dinh Khien, Vice-Minister of Planning and Investment, the growth of the State sector is the lowest at only 7.9 per cent. Among 36 products, only 10 have surpassed the plan: 18.2 per cent in clean coal, 20.7 per cent in processed aquatic products, 18.5 per cent in auto assembly, and 23.4 per cent in insecticide. Some have even decreased: crude oil only 89.9 per cent compared to last year, natural gas 99.5 per cent, medicines 93.1 per cent, knitwear 89.1 per cent, electric fans 89.8 per cent, machines 81.4 per cent, Diesel motors 83.7 per cent.
Mr Khien pointed out that the decrease is due to the low domestic consumption of cement, steel, and fertiliser, while the world production cost increased in steel, non-ferrous metals, and oil affecting local industries. In addition, the consumer good index increased affecting living conditions and purchasing power. The export value of garments and footwear increased only 2-4 per cent compared to last year. The slow implementation of projects has also affected growth rates. The foreign invested sector attained a lower growth than expected. Low growth rates were also made in industrial cities such as
To attain 8.5 per cent of GDP growth rate set for this year, the three remaining quarters must maintain a growth rate of 9 per cent. Industry must ensure a growth rate of 16 per cent. Mr Hoang Trung Hai, Minister of Industry said that related corporations and enterprises have been asked to review their plans and products and together with concerned ministries, agencies and localities remove all constraints to increase production. He pointed out that wooden furniture currently having good markets must accelerate production and timber import formalities must be simplified. As higher temperatures are forecast for the coming summer, there must be an increase in the production of electric fans, air conditioners, refreshments, and summer clothing. Fertiliser supply must be ready when the drought ends and animal feed must be ready when the bird flu is over. To increase crude oil output, PetroVietnam must review its plan and submit it to the Prime Minister for approval. Constraints to major projects must be removed and their implementation accelerated. In view of price hikes in the world market, the Ministry of Finance should reduce import tax on steel ingots and continue the consideration on similar imports. Mr. Hai requested all ministries to continue dialogue with businesses to help solve their problems.
Speaking at the conference, Prime Minister Phan Van Khai asked the Ministry of Industry and related ministries and agencies to focus on 8 measures to accelerate production: (1) The enterprises must review the production plan of each item, remove hurdles to accelerate the production of the best sellers and products of high-added value to attain high industrial value; (2) The administrative reform must facilitate the production and distribution; (3) All resources, especially among the population must be mobilised for development; (4) The authorities at all levels must help solve the land issues to implement investment projects; (5) Production cost must be cut to increase competitiveness and export; (6) By the end of May 2005, the Ministry of Finance, Taxation Department and Customs Office must reduce fees and overlapping fees; (7) Dialogue between concerned authorities and enterprises must be continued to help production, equitisation must be accelerated to increase capital for production; (8) Price controls must be continued and distribution networks be improved to keep down the price hike. The authorities at all levels must help the development of local industries.
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