Vietnam’s index of industrial production (IIP) saw a positive increase of 7.5 percent in the first four months of the year compared to the same period last year, continuing to drive Vietnam’s economic growth in 2022.
Manufacturing, processing sector takes the lead
Nguyen Thi Huong, director-general of the General Statistics Office of Vietnam under the Ministry of Planning and Investment, said the manufacturing and processing sector continued to be a bright spot with a year-on-year IIP rise of 8.3 percent in the first four months of the year. Key industries that recorded high increases in the reviewed period include clothing (20.1 percent), electrical equipment (19.1 percent), metal production (12.8 percent), pharmaceuticals (11.1 percent), and electronics, computers and optical products (9.8 percent).
Huong pointed out four main factors responsible for the IIP increase. These include the effective implementation of Resolution 11/NQ-CP on socioeconomic development and recovery, restoring consumer and business trust and the effective control of the COVID-19 pandemic.
Second, exports maintained a high growth rate, especially for crude oil, petroleum, chemicals, paper and its products. Third, foreign direct investment (FDI) pledges to Vietnam increased strongly in the first four months of the year, while realized capital reached an estimated US$5.92 billion, a year-on-year increase of 7.6 percent. Fourth, businesses have been active in production in accordance with the conditions and developments of the pandemic in each period, as well as making greater efforts to seek alternative supply sources of raw materials to meet domestic production needs.
Overcoming raw material shortages
The Russia-Ukraine war, China’s “zero-COVID” policy and the lingering pandemic effects have increased the price of input materials, due to supply shortages and prolonged transport, prompting Vietnamese businesses to seek solutions to overcome raw material shortages.
The government and the Ministry of Industry and Trade need to seek measures and adopt policies to ensure the supply of energy for the production and circulation of goods, with a focus on promoting renewable energy development, Huong said.
Ministries and departments should continue promoting administrative reforms, facilitate export-import activities and adopt preferential policies to boost the development of domestic material, components and parts suppliers. They must also seek alternative supply sources of raw materials, ensure smooth exports and imports and promote international cooperation.
VEN
