8:59:34 AM | 12/27/2023
The industrial production outcomes for Vietnam in 2023 are noteworthy, and as the country is entering 2024, the focus within the industrial sector will be on solutions to expedite growth.
Deputy Prime Minister Tran Hong Ha attends the conference of the Ministry of Industry and Trade
At the Industry and Trade Conference held on December 20 to evaluate the performance in 2023 and outline tasks for 2024, the Industry Department under the Ministry of Industry and Trade reported proactive and effective management and advisory initiatives. The department concentrated on a review and organized the resolute execution of key tasks and solutions as stipulated in Government Resolution 01/NQ-CP for 2023 and other directives from the Ministry's leadership. It promptly addressed challenges, facilitating the mobilization of all available resources for industrial development, thereby contributing to the realization of the targets set by the Industry and Trade sector in 2023.
The department's report highlighted that the majority of industries primarily orient their markets towards exports, exhibiting high dependence on the global market due to domestic production surpassing local demand. Notably, industries like textiles and garments, leather-footwear, electronics, food processing, and construction steel are profoundly affected by the global economic downturn in 2023, resulting in a substantial decline in industrial production and a sluggish recovery.
Furthermore, the processing and manufacturing industry, previously a primary driver of growth, experienced a significant slowdown. The estimated industrial production index for the manufacturing and processing industry in 2023 reflects an increase of 3.08%, marking the lowest growth rate in the past decade. Several industries witnessed a decrease in both the industrial production index and output, encompassing automobiles, motorbikes, steel, electronics, mobile phones, leather footwear and casual clothing. The industry's capacity for production is gradually improving, but fundamental challenges and bottlenecks persist, particularly in pivotal sectors.
Looking ahead to 2024, the industry anticipates encountering various challenges. The global economic recovery, albeit underway, is progressing at a slow pace, with the sluggish growth of the Chinese economy expected to pose difficulties on both the supply and demand sides of world and regional production, including Vietnam. Domestically, the slow recovery of demand and challenges in accessing and utilizing business resources are anticipated. Moreover, the continued decline in the real estate market is poised to directly impact several related manufacturing sectors.
Automobile body manufacturing line
In the given context, the Industry Department is poised to persist in the effective deployment of solutions aimed at contributing significantly to the realization of the Industry and Trade sector's goals and targets for 2024. This approach encompasses three key solutions.
First, the Industry Department will continue its proactive and effective implementation of government-approved supportive policies. The focus lies in mitigating challenges in production and business, especially within pivotal industries such as major exports (textiles, leather-shoes) and foundation industries (automobiles, mechanics, steel). This involves fostering the operation of new industrial projects to serve both export and domestic consumption, augmenting production capacity, and fortifying the source of goods for export.
The department will focus on consulting to improve institutions, policies and laws as a basis for new growth sources in industries in the short term as well as in the long term. This includes planning for exploration, exploitation, processing, and use of minerals to create new sources of growth motivation. The department will coordinate with relevant agencies to research and advise on policies to stimulate domestic consumption of industrial goods. The department will also promulgate mechanisms to increase the procurement and use of domestic goods, minimizing the use of imported products and raw materials. The department will build appropriate technical barriers in the short term to protect the domestic market for manufacturing industries in the context of difficult export markets.
The department will soon complete the draft of Key Industrial Law and report to the Government to submit it to the National Assembly Standing Committee for addition to the Law-making Program for the period 2024-2025. This will create a unified and sustainable legal basis for industrial development activities towards improving autonomy in raw materials, technology, production, and markets. The department will also complete and submit to the Prime Minister for promulgation the Development Strategy for a number of important industries such as automobiles, steel, dairy, paper and plastic, to unify the industry development orientation in the new period.
Third, the Department will persist in promoting the effective implementation of working programs in collaboration with localities and existing business support programs. This collaborative effort is geared toward revitalizing and amplifying industrial growth momentum in localities and key economic regions.
Source: Vietnam Business Forum
Vietnamese
