Strong Industrial Growth

10:22:52 AM | 11/30/2022

The Index of Industrial Production (IIP) of Vinh Phuc province rose by 15.42% year on year in the first 10 months of 2022, the highest 10-month growth in 2019 - 2022. The success was attributed to the close care and support of local authorities to businesses as well as an open, enabling investment environment for business recovery and stability in the wake of the COVID-19 pandemic.

According to a report by the Vinh Phuc Statistics Office, most local manufacturers have overcome difficulties and boosted their production to fulfill orders and complete their business plans in 2022. Many have actively invested and applied new technologies to production to cut costs and labor, enhance productivity, and meet the increasing demands of domestic and foreign markets. As a result, the province's industrial production has recovered and developed quickly and sustainably. And, its IIP was quite high for ten consecutive months.

The strongest growth was seen in February, May and June, respectively rising 19.38%, 20.06% and 19.01%. Industrial production was estimated to expand 6.41% in October and 16.77% year on year, thus further affirming that industrial manufacturing already regained growth momentum and the socioeconomic recovery and development policy of the Government has worked well.

In the first 10 months of 2022, the province's IIP was forecast to climb 15.42% year on year, much higher than the corresponding growth of 11.06% in 2021, 6.62% in 2020 and 13.89% in 2019. The processing and manufacturing industry accounted for over 98% of industrial production value and determined the annual industrial growth of 15.58%.

Besides, some processing and manufacturing fields made high growth over the same period of 2021 to positively contribute to the overall industrial growth. For example, the electronics component manufacturing sector jumped 20.54% year on year. Also in October 2022, the labor utilization index of local industrial companies looked up 3.78% month on month and 4.52% year on year. The index has continuously made month-on-month growth since the beginning of this year, reflecting industrial stability and growth and likely creating breakthrough growth in the coming time.

In addition, 363 companies resumed operations in October, posting annual growth of 16.72% and bringing the total number of companies in the year to October 15, both newly established and resumed, to 1,486.

With the goal of "Taking industrial development as a foundation, developing services and tourism as a spearhead, and considering agriculture and rural development an important task", Vinh Phuc province will focus on building specific mechanisms and policies to attract and release resources to meet effective and sustainable socioeconomic development tasks in the coming time. In particular, priority is given to high-tech electronics industries as the province aims to become one of the industrial centers of the country.

By Thanh Loan, Vietnam Business Forum