AsemconnectVietnam - In the first 7 months of 2024, the industrial production index (IIP) was estimated to increase by 8.5% over the same period last year.

Many key industrial products got high growth rates.
Many key industrial products saw increase
Continuing the recovery momentum from the end of 2023 to now, industrial production continued to show a positive trend. The industrial output increased sharply due to the number of new orders improving for the 4th consecutive month.
According to S&P Global (a multinational corporation organizing activities in the field of providing information and financial data), the growth rate of production output in July was faster than in June and reached the highest level since March of 2011. Therefore, industrial production maintained a positive growth momentum, the industrial production index in July was estimated to increase by 0.7% over the previous month and up by 11.2% over the same period last year.
In particular, compared to the same period last year, the processing and manufacturing industry increased by 13.3%; the electricity production and distribution industry increased by 9.9%; water supply, waste and wastewater management and treatment activities increased by 12.1%; the mining industry alone decreased by 7%.
Notably, in July the production of the economic locomotive of Ho Chi Minh City showed a recovery in all three indexes: IIP increased by 9.6%, processing and manufacturing consumption increased by 13.4% and inventory decreased by 17.8%. According to the Ministry of Industry and Trade, a number of key industrial products in the first 7 months of 2024 increased sharply compared to the same period last year. Notably, the production of steel bars and angle steel increased by 31.4%; rolled steel increased by 17.8%; natural fiber woven fabrics increased by 17.0%; NPK mixed fertilizer increased by 14.2%; powdered milk increased by 12.3%; diameter increased by 12.0%; phone components increased by 11.7%.
Although maintaining the growth momentum, the Ministry of Industry and Trade assessed that industrial production growth was not comprehensive when 6 localities had a decrease in IIP index; some manufacturing industries had a decrease in industrial production index; some key industrial products decreased compared to the same period last year. Notably, the steel and construction materials industries faced difficulties due to the domestic real estate market continuing to be sluggish and world demand decreasing, supply exceeding demand, domestic and export orders both decreasing;
The industrial production enterprises continued to face many difficulties due to difficulty in accessing capital despite reduced interest rates, increased costs of imported raw materials along with high USD exchange rates, high logistics costs, etc. reducing the price competitiveness of export products; the domestic production sector depends heavily on imported raw materials from outside.
The level of linkage and business cooperation between enterprises in the same industry and between industries was still limited; the linkage between FDI enterprises and domestic enterprises was still slow, so it has not promoted the development of management skills, technology transfer, the formation of supply chains of materials, raw materials and industry clusters. The strong participation of domestic enterprises in global production and supply chains has not been clearly improved.
CK
Source: VITIC/haiquanonline.com.vn