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Industrial production surges
Despite economic slowdown, industrial production in the country during the first half of the year was estimated to increase 6.2 per cent over the same period last year, reaching VND329.1 trillion (US$19 billion), said Deputy Minister of Industry and Trade, Bui Xuan Khu.
At a press conference in Ha Noi yesterday, June 17, Khu said that with a 9.6 per cent growth rate, private firms made the largest contribution to the country’s industrial production increase. Foreign invested firms followed with a growth rate of 5.5 per cent. Industrial production by State-owned firms, meanwhile, increased by less than 3 per cent.
Besides the efforts made by industrial firms to speed up investment and seek out the consumer market, Khu also attributed industrial sector achievements to the positive impacts from a series of Government policies and measures to curb the economic recession.
However, he also said that the 6.2 per cent growth rate was much lower than that of the same period in previous years. Due to the economic recession, industrial producers had to shrink their production because of sales lags.
Khu also said the country’s import value during the period was negatively impacted by slow domestic production. Imported materials and equipment, which are used for domestic production, reduced by 10-20 per cent.
Khu estimated that the country spent $30.64 billion on imports, down roughly 31.6 per cent year-on-year, during this period.
Exports in the first half of the year were estimated to be down roughly 10 per cent over the same period last year, staying at $27.57 billion, he said.
Khu attributed the decrease in exports to price reductions of key export staples including crude oil and agricultural products.
Consumer demand shrinkage in major markets was also a reason for the reduction in export turnover. According to the Ministry of Industry and Trade, demand for imported products in the US declined 7 per cent and the figures for the EU and ASEAN were 10 and 6 per cent, respectively.
The Government this year approved a growth rate target of 10 per cent for the industrial sector.
This calculates to industry production totalling VND711 trillion ($42 billion).
To meet the target, industry will have to achieve a 13.4 per cent growth rate in the second half of the year to offset the low 6.2 per cent increase in the first half.
Khu admitted that it would be hard for industry to meet the target, especially when still hit significantly by negative impacts from the global economic recession.
VietNamNet, VietNamNews
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