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Industrial production slows in first quarter
Industrial production in the first quarter of this year has seen the slowest growth since 1990 due to the impacts of the global economic crisis, according to the General Statistics Office (GSO).
Industrial output in March was only 53.2 trillion VND (roughly 3.2 billion USD), bringing total production in the first quarter to 152.9 trillion VND (9.2 billion USD), up just 2.1 percent against the same period last year.
The growth rate was particularly small in comparison with the 16 percent year-on-year increase seen in the first quarter of last year. For all of 2009, the nation has targeted an increase of 7.4 percent in industrial production, compared to 2008’s 14.6 percent.
Demand for industrial products fell sharply on both domestic and foreign markets, said the GSO, giving domestic industrial producers major difficulties in finding buyers.
State-owned enterprises were the hardest hit, reporting a reduction of 4 percent in industrial production, which fell to 35.5 trillion VND (2.1 billion USD).
Private enterprises, in contrast, saw a 5 percent growth, while foreign-invested enterprises were a tick behind, with 2.9 percent.
Among the country’s 34 leading industrial products, paper and packaging saw the biggest decline, with production dropping 39.2 percent. While there were decreases in industries across-the-board, cement saw a 10 percent year-on-year increase.
Among cities and provinces, Hanoi and the southern province of Ba Ria-Vung Tau saw the strongest growth rates, at 5.6 percent each, while the southern province of Binh Duong also managed to achieve industrial growth of 4 percent. Ho Chi Minh City edged up just 1.9 percent.
Among provinces seeing declines of as much as 20 percent were Da Nang, Vinh Phuc, Hai Duong and Phu Tho.
Some of these areas were reporting unemployment as high as 15 percent.
Faced with low demand, producers in a number of industries have been forced to stockpile inventories, with the GSO estimating that the volume of stockpiled goods was 67 percent higher than the same time last year. Stockpiled products included steel, tyres and textiles.
VietNamNet/VNA
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