The Vietnam Industrial Production Index (PII) in the first eight months of 2022 increased by 9.4% compared to the same period of the previous year, according to the General Statistical Office (OGE).
The bureau said that industrial production in August 2022 continued the rapid recovery trend with an increase of 2.9% from the previous month and 15.6% year-on-year due to the efforts of companies in the expansion of production to compensate for the period affected by the COVID-19 pandemic.
Compared to the same period of the previous year, the IIP growth rate in August reached 16.2% for the manufacturing and transformation industry; 14.8% for the production and distribution of electricity; 11% for water supply and garbage and wastewater management and treatment; and 10.2% for the mining industry.
During the eight months, the transformation and manufacturing industry registered the highest growth of the IIP, with 10.4%. It was followed by the production and distribution of electricity (6.8%), the industry of water supply, treatment and management of garbage and wastewater (5.8%) and the mining industry (4.2%).
The GSO report also showed that, in the last eight months, the IIP of some key industrial products increased considerably compared to the same period of the previous year, such as beer (31.2%); processed seafood (20.7%); telephone components (19.6%); automobiles (13.9%); sportswear (12.7%); leather footwear and sandals (12.5%); and tobacco (9.6%).
Meanwhile, other products experienced a decline in the IIP compared to the same period of the previous year, such as crude iron and steel (12.3%); televisions (10.7%); NPK fertilizers (6%); artificial fiber fabrics (5.8%); mobile phones (5.4%); aquatic feed (4.9%); liquefied petroleum gas (LPG) (2.4%); and the exploitation of crude oil (1%).
The GSO also reported that 61 of the 63 provinces and cities saw growth, while the remaining two localities saw IIP decline in the first eight months of 2022.
Of which, some localities achieved a relatively high increase in IIP due to the growth of industrial production in the processing and manufacturing industries; and the electricity generation and distribution industry.
During the eight months, the transformation and manufacturing industry registered the highest growth of the IIP, with 10.4%
Meanwhile, some other localities had a low IIP growth rate or a reduction in this index because companies faced many difficulties due to the impact of the pandemic.
Bắc Giang province achieved the highest IIP of 51% for the first eight months.
Some other localities also had a high PII index due to the strong recovery of the processing and manufacturing industry; and electricity production and distribution, such as Lai Châu, Đắk Lắk, Sơn La, Quảng Nam and Khánh Hòa.
In addition, the numerous difficulties in production and business activities caused the provinces of Trà Vinh and Hà Tĩnh to register an IIP reduction of 27% and 15%, respectively.
The number of employees working in industrial companies as of August 1, 2022 increased by 0.6% in the month and 23% in the year.
According to the Ministry of Industry and Commerce, production in industrial centers is showing positive signs of recovery. However, the lack of human resources is one of the main obstacles that companies face on the way to recovering production.
Phạm Thị Tình, from the Vietnam Industrial Support Alliance, said that after a long hiatus due to the pandemic, the skills of workers have decreased, so companies must spend time and expense on retraining. The cost of labor in the industrial sector has increased, but it is still not enough to attract workers.
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In addition, the Ministry of Industry and Commerce said that manufacturing companies should diversify markets by importing raw materials and exporting goods to avoid dependency.
Bắc Giang province achieved the highest IIP of 51% for the first eight months
There should be more policies to develop supporting industries in Vietnam to gradually become self-sufficient in raw materials. This is the central issue for sustainable industrial development in Vietnam.
The ministry also pointed out that it is necessary to continue changing industrial restructuring in the direction of developing the manufacturing industry and reducing processing and assembly for industrial products made in Vietnam.
Article republished from the Vietnamese state media VNA as part of an agreement between both parties to share content. Link to original article: https://vietnamnews.vn/economy/1312520/industrial-production-recovers-quickly-with-growth-of-9-4-in-eight-months.html
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