Strong recovery seen in industrial production in four months

Vietnam’s industry sector has seen continuous recovery with the index of industrial production (IIP) expanding 6.0% year on year in the first four months of this year, according to the Ministry of Industry and Trade (MoIT).

In April alone, the IIP rose 0.8% over the previous month and 6.3% compared to the same period last year.

Manufacturing-processing industry recorded the highest growth, with a year-on-year increase of 7% in April and 6.3% in the first four months of this year, the MoIT said.

A MoIT representative said that the results showed the efficiency of the Government’s support measures and drastic directions from the Prime Minister in speeding up the disbursement of public investment capital and the implementation of major industrial projects, as well as efficient FDI attraction solutions.

Meanwhile, the recovery of the world market has helped increase the new export orders, the representative said, adding that domestic firms’ capacity and confidence have been strengthened thanks to the Government’s support policies and the stable domestic macro-economic situation and the world market’s recovery.

However, the MoIT warned of risks in industrial production and trade activities, including incomprehensive IIP recovery among the localities and strong fluctuations in exchange rates.

Dao Phan Long, President of the Vietnam Association of Mechanical Industries (VAMI), held that businesses are in need of support measures to connect them with relevant ministries and sectors, as well as solutions to cope with their difficulties in capital and interest rates and assistance in administrative procedures.

Meanwhile, Nguyen Van, Vice President of the Hanoi Supporting Industry Business Association (HANSIBA), underlined the need to support businesses in capital, especially that with low interest rate to help them recover and grasp opportunities in 2024. Policies on debt rescheduling and extending debt repayment time will be helpful for businesses to ensure temporary capital to boost production and business activities, he stressed.

The MoIT said it will continue speeding up the disbursement of public investment capital and major projects in the fields of electricity, oil and gas, manufacturing-processing, and mining, thus creates market capacity for businesses to develop.

The ministry also pledges to give solutions to remove difficulties facing businesses and connect them with the supply chains of foreign firms investing in Vietnam.