Industrial Production: Driving Factor for Economic Growth in 2022

Photo: VGP

“Overcoming many difficulties, the whole industry continued to prosper. The added value of the whole industry in 2021 increased by 4.82% compared to 2020. This is an important factor in promoting the country's economic growth in 2022,” said Nguyen Thi Huong, general director of the General Statistics Office.

According to the General Statistics Office, industrial production in the fourth quarter of 2021 prospered right after localities across the country implemented the Government's Resolution No. 128/NQ-CP dated October 11, 2021 (Resolution No. 128) of Government. The resolution is about safe adaptation, flexibility, and effective control of the Covid-19 pandemic with a value-added growth rate of 6.52% over the same period last year.

In 2021, the added value of the whole industry increased by 4.82% compared to 2020 (in the first quarter, it increased by 6.44%; the second quarter increased by 11.18%; the third quarter decreased by 4.4%; the fourth quarter increased by 6.52%); in which, the processing and manufacturing industry increased by 6.37%, contributing 1.61 percentage points to the overall growth of the whole economy.

Electricity production and distribution increased by 5.24%, contributing 0.19 percentage points; water supply industry, wastewater management increased by 4%, contributing 0.02 percentage points; the mining sector decreased by 6.21% (due to a decrease in crude oil production by 5.7% and a decrease of 19.4% in natural gas), reducing 0.23 percentage points in the overall increase.

According to the Ministry of Industry and Trade, after the Government issued and implemented Resolution 128, many provinces and cities across the country have developed and implemented safe, flexible, and effective plans to control the Covid-19 pandemic, to gradually recover and develop the economy in a new normal state.

Production activities, especially in the provinces and cities where most of the country's important industrial production activities are concentrated, such as Bac Ninh, Bac Giang, Ho Chi Minh City, and Hanoi, had positive changes.

Photo: MOIT

In most localities, especially in Ho Chi Minh City and southern provinces, production has resumed and businesses have accelerated production to promptly deliver goods according to signed contracts.

To accelerate the development of industrial production in 2022, the Ministry of Industry and Trade said it would continue to implement the Government's guidance and direction in Resolution 128.

In addition, the Ministry of Industry and Trade focuses on removing difficulties and obstacles for important industrial projects; supporting factories to maintain and restore production to keep orders, supply chain.

At the same time, the Ministry urgently accelerates the implementation of large public investment projects, especially projects on energy and infrastructure for industrial development. This is to promote consumption and trade demand of the economy as well as to develop markets for a number of key manufacturing industries, such as steel, engineering, construction materials, and automobiles.

Regarding economic prospects in 2022, Le Trung Hieu, head of the Department of System of National Accounts (General Statistics Office) said that the pandemic will continue to develop complicatedly across the country. However, with a safe adaptive approach to economic development, localities implemented the smallest zoning, thoroughly handling the outbreaks.

Moreover, from January 1, 2022, more international routes can be opened, international tourists have the opportunity to come to Vietnam and Vietnamese people can travel abroad.

This is also an opportunity for the tourism industry to have a strong recovery, thereby stimulating the development of other service industries such as accommodation, catering, wholesale, and retail.

Along with that, the expansion of modes of transport (road and rail), connection with international trade will be more flexible for both goods and passengers. Vietnam's transport industry will also expect high growth again.

From a business perspective, Dao Quang Dung, CEO of Eastern Sun, believes that digital transformation will be the key to the country's economic development in 2022 as well as in the following years. Enterprises need to develop a development strategy suitable to the new situation, restructure and apply science and technology to production, business, and digital transformation.

However, the process of economic recovery, as well as businesses, still need support from government policies, such as financial policies, training, investment in technology to improve production efficiency, promote economic development and solve social security problems,” said Dao Quang Dung.

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