AsemconnectVietnam - As a pillar of the economy, industrial production requires new, stronger and more comprehensive thrusts to recover in 2024.

Key industrial products increased sharply
According to the Ministry of Industry and Trade, the results of industrial production in the first 5 months of 2024 showed many positive signs, creating momentum for economic recovery and development in the following months of 2024. Accordingly, the global index Industrial sector (IIP) increased by 6.8% over the same period last year (the figure of the same period of 2023 decreased by 2.0%).
Notably, some key industrial products in the first 5 months of 2024 increased compared to the same period last year. For example, bar steel and angle steel increased by 33.8%; textiles made from natural fibers increased by 20.2%; smart watches increased by 19.7%; rolled steel increased by 18.0%; urea fertilizer increased by 14.6%; N.P.K mixed fertilizer increased by 12.6%.
Assessing industrial production in the past 5 months, leaders of the Department of Industry (Ministry of Industry and Trade) pointed out that key industries have recovered strongly such as textiles, footwear, steel, electronics, and food processing etc., has reflected a rapid recovery, which showed that the input fields for production and business are recovering strongly.
"These fields will create very good momentum for growth in the coming months, especially the processing and manufacturing sector which is showing many signs of positive recovery" - said the leader of the Department of Industry.
Regarding the increase in the processing and manufacturing industry, the Ministry of Industry and Trade's report showed that in 5 months this industry also increased by 7.3% (the figure of the same period of 2023 decreased by 2.6%), contributing 6.4 percentage points to the general increase; the electricity production and distribution industry increased by 12.7% (the figure of the same period of 2023 increases by 1.2%), contributing 1.1 percentage points; the water supply industry, waste and wastewater management and treatment activities increased by 6.3% (the figure of the same period of 2023 increased by 5.9%), contributing 0.1 percentage points; the mining industry alone decreased by 5.2% (the figure of the same period of 2023 decreased by 2.4%), reducing the overall increase by 0.8 percentage points.
The 5-month production index of a number of key level II industries was also recorded to increase compared to the same period last year, of which the production of rubber and plastic products increased by 27.4%; electrical equipment production increased by 24.0%; chemical and chemical product production increased by 20.1%; the production of beds, wardrobes, tables and chairs increased by 19.6%; metal production increased by 13.2%; the textile industry and the production and distribution of electricity, gas, hot water, steam and air conditioning both increased by 12.7%.
The industrial production grew on a large scale with 55 localities having an increase in industrial production index compared to the same period last year, only 8 localities had a decrease in IIP compared to the same period last year.
According to the assessment of the Ministry of Industry and Trade, the growth of industrial production in May of 2024 was due to the efforts of ministries, branches and the business community to concretize solutions to reduce inventory and boost consumption of goods.
Achieving this result, some economic experts recognize that associations and industries have actively strengthened business connection activities and promoted product consumption. Enterprises have restructured, reduced costs and the production costs to improve product competitiveness, thereby improving efficiency and flexibly adapting to new situations.
Based on the economic development targets set by the Government and the National Assembly for 2024, the Ministry of Industry and Trade targets the industrial production index to increase by about 7-8% compared to 2023.
However, according to economic experts, in 2024, as the mainstay of the economy, industrial production requires new, stronger and more comprehensive thrusts. According to economic experts, it is forecast that industrial production will still face difficulties in 2024, requiring many active measures to support production and measures to stimulate consumption to release inventories.
To regain high growth momentum requires a lot of support and facilitation from the Government, ministries, branches, banking system, and localities to continue to take more active measures to support production industry, especially output for production through measures to stimulate domestic consumption, increase trade promotion to expand export orders, and clear high inventory of goods by the end of 2023.
From the perspective of state agencies, to contribute to ensuring the industrial growth target of 7 - 8%, Mr. Truong Thanh Hoai - Director of the Department of Industry said that the Industry and Trade sector continues to actively and effectively deploy enterprise support policies that have been approved by the Government to remove difficulties and obstacles in production and business activities of enterprises - especially in key export industries such as textiles, leather - shoes and foundation industries such as automobiles, mechanics, steel, etc.
Providing more solutions for industrial development in the coming time, leaders of the Department of Industry affirmed that they will continue to promote industrial restructuring towards increasing the proportion of processing and manufacturing industries and reducing the proportion of processing and assembly of industrial products manufactured in Vietnam; gradually remove difficulties for businesses to increase competitiveness, build technical barriers for imported products to support domestic products, increase localization rate, etc.
In addition, the Association and industry also closely monitor the world situation, especially the situation of Vietnam's large, traditional export markets, thereby promptly proposing solutions to overcome difficulties with the government and state agencies.
In addition, recently Deputy Prime Minister Tran Hong Ha signed Decision No. 71/QD-TTg amending and supplementing a number of articles of Decision No. 68/QD-TTg (dated January 18, 2017) on approval of the Supporting Industry Development Program from 2016 to 2025. To implement the program, more than 870 billion VND is needed.
Accordingly, from 2021 to 2025, the Supporting Industry Development Program will connect and support supporting industry enterprises to become product suppliers for domestic and foreign customers; as well as promote and attract foreign investment in supporting industries.
The main activities of the program include surveying, assessing needs, developing standards and quality control regulations for supporting industry products; organize assessment and confirmation of capacity of supporting industry enterprises; organize promotion programs to attract foreign direct investment in supporting industries; organize exhibitions to display supporting industrial products, search and develop domestic and foreign product consumption markets.
Decision No. 71/QD-TTg clearly states that the funding for the implementation of the program for the period from 2021 to 2025 will come from economic sources belonging to the central budget and other capital sources for industrial development activities. Support managed and organized by the Ministry of Industry and Trade is expected to be 870.7 billion VND, of which 750.2 billion VND is from the state budget capital, and the remaining 120.5 billion VND is from other capital sources.
CK
Source: VITIC/congthuong.vn