AsemconnectVietnam - Industrial production is maintaining growth momentum, especially the impressive recovery of the processing and manufacturing sector.

The production activities of domestic enterprises, especially the processing and manufacturing industry, have improved. With positive signals from the market in the first months of the year, enterprises are taking advantage of the opportunity to accelerate and achieve the highest production and business targets this year.
For example, Vietnam Engineering and Industry Corporation (Intech Group) said that although production was affected by storm No. 3, the unit focused on serving both domestic and export orders. At the time, the number of orders deployed increased by 30% compared to the same period. The orders were made according to the agreed roadmap with customers and all departments had to follow, besides that we had to recruit more staff.
In addition, electrical and electronic enterprises also increased production volume due to many export orders.
According to the General Statistics Office's report, the important driving force for the 7.4% GDP growth in the third quarter of 2024 was the industrial and construction sector with an increase of 9.11%, contributing 48.88% to the total added value growth of the entire economy, in which the processing and manufacturing industry is a bright spot of the economy with a growth rate of 11.41% - the highest growth rate in the same period in the past 6 years.
"The added value of the processing and manufacturing industry in the third quarter is a bright spot, reaching the highest in the same period in the past 6 years, higher than the growth rate of the first 9 months of 2019 - the time before the Covid-19 outbreak" - the report stated.
In general, the added value of the entire industry in the first 9 months of 2024 increased by 8.34% over the same period last year (in the first quarter, it increased by 6.47%; in the second quarter, it increased by 8.78%; in the third quarter, it increased by 9.59%). Of which, the processing and manufacturing industry increased by 9.76% (in the first quarter, it increased by 7.21%; in the second quarter, it increased by 10.39%; in the third quarter, it increased by 11.41%), contributing 2.44 percentage points to the total added value of the entire economy.
In addition, in the first 9 months of 2024, the consumption index of the entire processing and manufacturing industry increased by 12.5% over the same period in 2023 (in the same period of 2023, it increased by 0.6%).
Notably, some localities have a fairly high industrial production index due to the high growth of the processing and manufacturing industry. In particular, localities with production indexes of the processing and manufacturing industry in the first 9 months of 2024 increased compared to the same period last year: Lai Chau increased by 47%; Phu Tho increased by 40.3%; Bac Giang increased by 28.2%; Thanh Hoa increased by 20%; Binh Phuoc increased by 17.5%.
With the above results, Mr. Pham Tuan Anh - Deputy Director of the Department of Industry (Ministry of Industry and Trade) recognized that the processing and manufacturing industry has always been considered one of the key economic sectors, playing the role of a driving force for economic growth, promoting trade and export, especially some key processing and manufacturing industries such as: Textiles, footwear, mechanics, electronics, supporting industries, etc.
Dr. Le Dang Doanh - economic expert also said that in the industrial sector, the processing and manufacturing industry contributes the highest to GDP in terms of added value, creating the premise and foundation for the process of industrial development and modernization of the country. In recent years, if comparing the entire economy, in the industrial sector in general, the processing and manufacturing industry in particular has had the strongest breakthrough.
Focus on long-term growth solutions
To focus on supporting businesses to overcome difficulties and promote production and business, on October 7, 2024, Prime Minister Pham Minh Chinh signed Official Dispatch No. 103/CD-TTg on supporting businesses to overcome difficulties and promote production and business activities in late 2024 and the following years. Accordingly, the Prime Minister requested Ministers, Heads of ministerial-level agencies, Government agencies; Chairmen of People's Committees of provinces and centrally-run cities to focus on directing agencies, units and subordinate levels to continue to make efforts and resolutely implement solutions and tasks under their authority to support businesses to overcome difficulties and obstacles and promote production and business activities in the coming months and years; in which, focusing on implementing key tasks and solutions.
Specifically, in the process of formulating and promulgating policies, ministries, agencies and localities need to create a favorable environment to help businesses develop, including small and medium enterprises, so that this type of enterprise can grow and develop; encourage mechanisms for large enterprises to support and promote small and medium enterprises to create domestic value chains and develop domestic supporting industries; support policies need to be practical and effective for businesses to compete fairly and effectively between regions; study support to reduce costs for businesses to improve competitiveness.
At the same time, to promote decentralization and delegation of authority in conjunction with enhancing the implementation responsibility of agencies and units; reduce unnecessary and inappropriate administrative procedures and licenses, which increase compliance costs. Providing additional solutions for industrial development in the coming time, the leader of the Department of Industry affirmed that it will continue to promote the restructuring of the industrial sector towards increasing the proportion of processing and manufacturing industries and reducing the proportion of processing and assembling for industrial products produced in Vietnam; gradually removing difficulties for enterprises to increase competitiveness, building technical barriers for imported products to support domestic products, increasing the localization rate, etc.
Analyzing further, Mr. Pham Tuan Anh said that the Ministry will consider researching and issuing incentives and support for the production of basic materials such as fabricated steel (serving the mechanical industry); raw materials, fabrics and leather for the textile and garment and leather - footwear industries; petrochemical products such as plastic beads, plastic molds, artificial rubber, artificial fibers... to ensure input for supporting industries as well as downstream industries.
The Ministry of Industry and Trade also believes that it is necessary to have policies and solutions to support financial support for industrial enterprises, especially processing and manufacturing enterprises, so that enterprises can have stable production and business conditions; develop and effectively implement industrial and supporting industry development programs in the area, focusing on improving the capacity of small and medium enterprises; conduct enterprises restructure, reduce costs and production prices to improve product competitiveness, thereby improving efficiency and adapting flexibly to the new situation.
CK
Source: VITIC/congthuong.vn