Industrial production and trade recover slowly
Speaking at the press conference, Deputy Minister of Industry and Trade Do Thang Hai said that in the first four months of the year, the economy faced many challenges due to certain impacts from the global economic slowdown, market fluctuations and policy adjustments of major economies, especially interest rate and exchange rate policies. Vietnam's two main growth drivers, exports and domestic consumption, faced many difficulties when domestic market demand did not increase much, inflation trended upward, hindering economic recovery...
In that context, based on the viewpoints, directions and directions of the Government and the Prime Minister, the Ministry of Industry and Trade has thoroughly grasped and specified them in programs and action plans, especially closely following the fluctuations of the world economy to be flexible in management; focusing on reviewing, organizing and implementing drastically and quickly the key tasks and solutions set out; promptly removing difficulties and obstacles to mobilize all resources for development.
Regarding industrial production, in the first 4 months of 2023, IIP decreased by 1.8% compared to the same period last year (in the same period, it increased by 7.8%). In particular, the processing and manufacturing industry, which plays a role as the driving force for economic growth, decreased by 2.1% (in the same period, it increased by 8.5%); the electricity production and distribution industry increased by 0.5% (in the same period, it increased by 7%); the mining industry decreased by 2.8% (in the same period, it increased by 4.1%)...
The industrial production index in the first 4 months of 2023 compared to the same period last year increased in 52 localities and decreased in 11 localities nationwide. In particular, some key localities in industrial production had decreased IIP such as: Bac Ninh, Vinh Phuc, Da Nang, Ba Ria - Vung Tau.
Regarding import and export of goods, the world economy has faced many difficulties, which have continued to affect Vietnam's import and export turnover. The total import and export turnover of goods in the first 4 months of 2023 reached 206.76 billion USD, down 15.3% over the same period last year (up 16.73% over the same period last year), of which exports decreased by 13% (up 17.18% over the same period); imports decreased by 17.7% (up 16.27% over the same period). The trade balance of goods in the first 4 months of 2023 had a trade surplus of 7.55 billion USD.
Regarding the domestic market, although affected by factors such as raw material prices on the world market, epidemics, seasons, etc., basically, supply and demand of goods are guaranteed, prices have increased and decreased alternately for each group of goods. The weather is favorable for agricultural production, the supply of vegetables, fruits, and food is abundant, ensuring to meet people's consumption needs. Although the number of Covid-19 infections in the country tends to increase again in April, people's consumption of essential foods remains stable, there is no phenomenon of shortages, price hikes, buying, or hoarding of food. The supply of gasoline is adequate, domestic prices tend to increase/decrease alternately due to the impact of world prices.
According to Deputy Minister Do Thang Hai, the reason for the decline in industrial production and import-export activities is that Vietnam's export partners such as the United States and the EU have reduced spending on purchasing common and luxury products, causing the volume of orders to decrease. Meanwhile, domestic industrial production sectors are mainly export-oriented, heavily dependent on the global market because domestic production output far exceeds domestic market demand, especially for industries such as textiles, footwear, electronics... which only supply 10% of domestic demand, the remaining 90% of output is for export.
In addition to the decrease in volume, compared to the same period, the export prices of many agricultural products (cashew nuts, coffee, pepper, rubber, etc.) decreased; the export prices of crude oil, petroleum products, ores, fertilizers, and iron and steel also decreased, affecting the growth rate of production value and export of goods in general.
In addition, China's reopening also creates a lot of competitive pressure on Vietnam's exports of the same type. Meanwhile, our businesses still face many difficulties due to the decrease in foreign orders, the domestic market's low purchasing power, high input costs, and difficulty in accessing credit.
Strengthen trade promotion, exploit new markets
In the coming time, the forecast is that the world and domestic economic situation will continue to be difficult despite signs of recovery, but slowly and unevenly. Therefore, the Ministry of Industry and Trade will focus on innovating and strengthening trade promotion activities towards new markets, potential markets such as India, Africa, the Middle East and Latin America, Eastern Europe... and markets that are less affected by inflation and have positive growth (ASEAN). Resolutely break into markets with a growing middle class such as the E7 emerging markets (China, India, Turkey, Russia, Mexico and Indonesia; Halal markets (Middle East, Malaysia, Brunei). Promote the effective exploitation of Free Trade Agreements (FTAs). Facilitate and enhance digital transformation; Promote import and export development through cross-border e-commerce activities.
Continue to implement measures to balance supply and demand, stabilize the market; Timely and effectively implement programs to stimulate domestic consumption; Effectively implement the Program to promote investment in construction and development of trade infrastructure in border areas, mountainous areas, remote areas and islands in localities; Continue to support businesses, especially small and medium enterprises, to recover and develop production through solutions to stabilize the financial and monetary markets, remove difficulties in capital and monetary solutions, create conditions to support businesses, especially enterprises in the processing and manufacturing sector, to have more resources to recover and develop.
At the press conference, in addition to issues related to production, import, trade activities, issues related to the electricity supply situation in the hot season of 2023, the implementation of the VIII Power Plan, bottlenecks at Nghi Son Refinery and Petrochemical Plant... were hot topics that interested press units asked questions to the Ministry of Industry and Trade.
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