Vietnam's industrial production slightly rebounding

Data from the General Statistics Office (GSO) showed that Vietnam's industrial production was greatly affected by Covid-19 in the first half of 2020 but has gradually bounced back since May. 
July 06, 2020 | 15:30
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ITM Semiconductor company in Bac Ninh (Photo: VNA)

Vietnam's industrial production value increased 2.71% year-on-year in the first half of 2020, with a rise of 5.1% in the first quarter followed by 0.74% in the second quarter, since the economy was hit hard by the coronavirus outbreak, according to VOV.

Processing and manufacturing was up 4.96% from January to June. This is the slowest pace since 2011. Electricity production and distribution was up 3.04%, and water supply, waste, and wastewater treatment up 3.76%. Meanwhile, mining shrank 5.4%.

Pham Dinh Thuy, Director of the GSO’s Industrial Statistics Department, said the complex development of the Covid-19 outbreak in several countries has caused negative impacts on supplies imported for industrial production, especially the processing and manufacturing sector, Xinhua reported.

In addition, the Government Decree No 100/2019/ND-CP set stricter fines for traffic violations, changed alcohol consumption habits and affected beverage production, he noted.

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Vietnam's industrial production value increased 2.71% in H1 (Photo: Khanh Hoa News)

Several industries saw sharp decline in production during the first half, including motor vehicle (16.4%), crude oil and natural gas (11.3%), the repair, maintenance, and installation of machinery and equipment (9.5%), and beverage (8.8%).

Others grew and contributed to overall growth, such as the manufacture of medicines, pharmaceutical chemicals, and medicinal materials (27.9%), the production of coke and refined petroleum products (15%), metal ore mining (13.3%), the production of electronic and optical devices (9.8%), and pulp and paper production (9.1%).

Production of automobiles witnessed the largest output reduction year-on-year, at 26.6%, followed by refined sugar (down 23.7%), beer (down 17.4%) and crude oil (down 13.9%).

Meanwhile, outputs of phone components went up 27.5%, petroleum and oil up 20.9%, and monosodium glutamate up 12.3%.

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Industrial production regained growth momentum since May (Photo: Long An News)

GSO Deputy General Director Nguyen Thi Huong said that because the pandemic was brought under control early in Vietnam, economic sectors have started to return to normal and thus industrial production regained growth momentum since May.

In order to achieve faster growth in the coming months, she suggested ministries, sectors, and localities to step up the reform of procedures to help businesses access supportive policies, assist them in seeking material supply sources and encourage consumers to purchase locally-made products.

Minister of Planning and Investment Nguyen Chi Dung also emphasized solutions to actively implement or participate in the restoring of supply chains, developing new value chains and handling industrial inventory.

Along with that, he noted the importance of speeding up the national energy assurance projects, maintaining production of raw materials that Vietnam has advantages, and increasing production capacity for the economy, informed VNA.

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