Industrial production gradually rebounding: GSO
Industrial production was greatly affected by COVID-19 in the first half of 2020 but has gradually bounced back since May, according to the General Statistics Office (GSO).
The factory of the Hoa Phat Steel Sheet Co. Ltd in Pho Noi A Industrial Park of Van Lam district, Hung Yen province (Photo: VNA
Hanoi - Industrial production was greatly affected by COVID-19 in the first half of 2020 but has gradually bounced back since May, according to the General Statistics Office (GSO).
Industrial production value rose 2.71 percent year-on-year in the first half, with an increase of 5.1 percent in the first quarter followed by just 0.74 percent in the second, as the economy was hit hardest by the coronavirus outbreak.
Processing and manufacturing was up 4.96 percent in the January-June period - the slowest first-half pace since 2011, electricity production and distribution up 3.04 percent, and water supply, waste, and wastewater treatment up 3.76 percent. Meanwhile, mining shrank 5.4 percent.
Pham Dinh Thuy, Director of the GSO’s Industrial Statistics Department, said COVID-19 disrupted the supply of input materials for industrial production, especially processing and manufacturing, from many countries.
Government Decree No 100/2019/ND-CP, which sets stricter fines for road and railway traffic violations and took effect on January 1, changed alcohol consumption habits and subsequently affected beverage production, he noted.
Several industries saw sharp declines in production during the first half, including motor vehicle (16.4 percent), crude oil and natural gas (11.3 percent), the repair, maintenance, and installation of machinery and equipment (9.5 percent), and beverage (8.8 percent).
Others grew and contributed to overall growth, such as the manufacture of medicines, pharmaceutical chemicals, and medicinal materials (27.9 percent), the production of coke and refined petroleum products (15 percent), metal ore mining (13.3 percent), the production of electronic and optical devices (9.8 percent), and pulp and paper production (9.1 percent).
GSO Deputy General Director Nguyen Thi Huong said that because the pandemic was brought under control early in Vietnam, economic sectors have begun returning to normal and industrial production regained growth momentum since May.
To achieve faster growth in the months to come, she suggested ministries, sectors, and localities step up the reform of procedures to help business’s access support policies, assist them in seeking material supply sources, and encourage consumers to purchase locally-made products.