Ho Chi Minh City industrial production to maintain recovery momentum
Ho Chi Minh City industrial production to maintain recovery momentum
The efforts of the government and businesses to fight against the COVID-19 pandemic and maintain production is expected to keep industrial production in Ho Chi Minh City on the rise.
The index of industrial production (IIP) of May is expected to rise by 1.6 per cent compared to last month.
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According to data from Ho Chi Minh City Department of Industry and Trade, industrial production in the city maintained its recovery momentum as the Index of Industrial Production (IIP) of May is expected to rise 1.6 and 5 per cent compared to last month and the same period last year.
In May, the cumulative IIP of the country is estimated to increase by 7.4 per cent on-year. This positive result is likely due to the efforts of businesses to fighting against COVID-19 and maintain production, helping the city recover its economy and industrial production.
Accordingly, the electronics manufacturing, mechanical, pharmaceutical-rubber-plastic, and food and beverage processing industries are the four key industries leading the growth.
The average growth rate of these industries in the first five months was estimated at 8.15 per cent on-year, 1.11 percentage points higher than the overall growth rate of all industries in the country.
Specifically, the electronics manufacturing industry is estimated to have increased 22.8 per cent. The Department of Industry and Trade stated this is considered good growth as products are diversified based on domestic and foreign demand.
On the other hand, the IIP of the mechanical industry is estimated to have risen by 12.59 per cent. As Vietnam has signed a number of free trade agreements and supply chains are shifting from many countries to Vietnam, domestic mechanical businesses are looking at bright prospects to enhance their manufacturing operations.
However, raw material and goods imports for foreign-invested enterprises have been disrupted at high-tech industrial parks by COVID-19, resulting in them turning to domestic suppliers. According to the Department of Industry and Trade, this is a good opportunity for supporting industry businesses to dive deeper into the global supply chains and increase their competitiveness.
Thirdly, the pharmaceutical-rubber-plastic industry witnessed an estimated increase of 2.14 per cent. While lower than last year, large companies in the plastic industry producing packaging, household plastics, and industrial plastics still maintained growth.
Last but not least, the food processing industry and the food and beverage industry recorded an estimated stable 3.89 per cent growth. The IIP index saw high increases in the beverage industry with 3 per cent, and 4.4. per cent in the food processing industry.
