Industrial production slows to 4.4% in August
Industrial production slows to 4.4% in August
Viet Nam's index of industrial production (IIP) in August increased by only 4.4 compared to last year, much lower than the 7 per cent rise of last month, the General Statistics Office (GSO) reported.
The office said that the processing and manufacturing sector increased 6.9 per cent from a year earlier; production and distribution of electricity jumped 8.4 per cent; and water supply, sewage and waste management soared 9.5 per cent. On the other hand, the mining sector fell 5.2 per cent.
With August's rise, the country's IIP in the first eight months of the year rose 5.3 per cent against the same period last year. However, many industries exceeded this, including prefabricated metal, chemical products; paper; medicines and pharmaceuticals and drink manufacturing posted growth of between 8.5 and 12.9 per cent. Production of electronic, computer and optical products fell 0.5 per cent on year in the first eight months; metal manufacturing fell 1.9 per cent; mining and quarrying of coal and lignite tumbled 3.4 per cent; production of beds, wardrobes, tables and chairs dropped 6.2 per cent.
Other mining and quarrying operations dropped 6.4 per cent year-on -year.
In January-August, central Quang Ngai Province topped the list of cities and provinces with an IIP increase of 26.8 per cent; followed by northern Vinh Phuc with 20.3 per cent; central Da Nang City with 10.3 per cent and northern Hai Duong City with 9.5 per cent. Meanwhile IIP of Ba Ria - Vung Tau in the south and Quang Ninh in the north dropped 1.1 per cent, the GSO reported.
GSO experts attributed the low increase in industrial production to high stockpiles in the manufacturing and processing sectors, which account for nearly 80 per cent of the country's total industrial production value.
By August 1, the inventory index of the manufacturing and processing industries was 9 per cent, up 0.2 per cent against July 1. There were also large stockpiles of chemicals, engines, and food.
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