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Hanoi’s industrial production recovers
Many businesses in Hanoi have ridden out the economic slowdown and shown signs of recovery thanks to their all-out efforts and the government’s economic stimulus packages.
Despite the gloomy picture of the world economy, the city’s industrial production value over the past 7 months has increased by 5.1 percent year on year to hit nearly VND44,000 billion. Many businesses have even achieved growth rates of between 18-54 percent, including those manufacturing precision tools, machinery, oil products, office equipment and chemicals.
Pham Duc Tien, deputy director of the Hanoi municipal Department of Industry and Trade, attributes the encouraging results to efforts by businesses, the positive effects of the government’s stimulus packages and tax incentives, and Hanoi’s policies.
Tran Nguyen Chau, deputy director of the Thong Nhat Motorcycle and Bicycle One-member liability company, says his company’s 12-month revenue increased by 18 percent and employee income rose to nearly VND3 million per capita a month.
“Our employees are working hard to fill orders signed early this year,” says Chau.
He says that thanks to the government’s stimulus packages, his company has taken out bank loans to expand production.
Truong Thi Phong, deputy general director of May 19 Textile Company, shares Chau’s view, saying that her company has weathered the economic storm owing to the government’s incentive policies.
In the first six months of this year, the company experienced a year-on-year increase of 34 percent and 54 percent in industrial production and revenue respectively. Employees’ monthly salary also rose to VND1.8-1.9 million per capita.
According to the State Bank of Vietnam, commercial banks in Hanoi have so far disbursed nearly VND70,000 billion worth of subsidised loans, of which 80 percent went to businesses.
However, businesses propose that the government extend its subsidised loan programme till June 2010 to help businesses operate more efficiently.
Le Van Thanh, general director of Dong Luc joint stock company, points out that “If businesses no longer benefit from the government’s stimulus packages, they are likely to fall into difficult times again.”
Pham Hong Viet, director of the Hanoi Rubber joint stock company, explains that although the economic recession has slowed and the economy has shown green shoots of recovery, there remain a number of difficulties ahead.
“The government should extend the programme till June 2010,” he recommends.
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