Industrial production declines in HCM City in seven months

The index of industrial production (IIP) in Ho Chi Minh City went down 5.5 percent year-on-year in seven months of this year due to COVID-19 pandemic, according to the municipal Department of Industry and Trade.

 

In July alone, the index rose by 8.6 percent month-on-month, including manufacturing and processing up 9 percent, electricity production and distribution up 3.9 percent.

 

However, four key industries saw a 0.9 percent decrease in seven months but moved up more than 4.6 percentage point from the IIP, including electronics up 18.6 percent, and chemicals and pharmaceuticals up 7.3 percent.

 

According to local enterprises, domestic industrial production is facing pressure caused by imports.

 

Deputy Director of the department Nguyen Phuong Dong highlighted a need to issue breakthrough solutions and policies to support enterprises as a number of markets have yet to open their doors due to the pandemic.

 

Dong said local exports via border gates nationwide rose by 5.8 percent to 24.7 billion USD in seven months. However, its shipments to European markets joining the European Union – Vietnam Free Trade Agreement only reached over 2.74 billion USD, down 7 percent year-on-year.

 

China remains the city’s largest importer with a value of over 6 billion USD, up 44.7 percent annually, followed by the US and Japan.

 

The total retail of goods and services surpassed 718.1 trillion VND, down 3.8 percent annually during the period, including accommodation and dining services down 45.1 percent and travelling down 74.9 percent.

 

At the same time, inventory in the manufacturing and processing sector also increased by 5.5 percent year-on-year.

 

In the current context, experts suggested firms grasp of opportunities from domestic and foreign markets by meeting technical requirements such as origin of products and intellectual property protection.

 

Source: Vietnam News Agency

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