For more complete joy

Processing and manufacturing industry leads growth

Industrial production in the first quarter of 2024 increased by 5.7% over the same period last year. Of which, 3/4 of the first-level industries including: Processing and manufacturing industry; electricity production and distribution; water supply and wastewater and waste treatment increased over the same period last year with figures of 5.9%, 12.1% and 4% respectively.

The production index of the processing and manufacturing industry in the first quarter increased by 5.9%, the consumption index of the processing and manufacturing industry increased by 8.2%, leading to an expected increase of 14.1% in the inventory index of the entire processing and manufacturing industry by March 31, 2024 compared to the same period last year. The average inventory ratio of the entire processing and manufacturing industry in the first quarter was 68.7%, much lower than the inventory ratio of the same period in 2023 at 81.1%. This directly confirms that the "health" of the industry is improving.

With the above results, industrial production is considered a bright spot of the economy in the first quarter. Notably, in the context of difficulties, the increase in industrial production proves that the resilience of domestic manufacturing enterprises has become more stable, and they can survive and grow in the face of challenges.

Processing and manufacturing industry continues to lead growth (Illustration photo)

However, according to experts, the results of industrial production, although joyful, are not complete. Because industrial production in the first quarter increased quite well but on the basis of the decrease in production in the first quarter of 2023.

On the other hand, the production index of the processing and manufacturing industry in the first quarter of 2024 also increased slightly compared to the same period in previous years. This shows that although industrial production has increased, the rate of change is still slow and has not really improved.

The processing and manufacturing industry is the growth engine of the economy, with most of its production output serving exports. The "health" of this industry not only reflects the current production status but also acts as a mirror of import and export activities. The low growth of the industry in the first quarter of this year requires policymakers and management agencies to make more efforts to achieve the goal of stabilizing and growing the macro economy.

Need stronger intervention

Concerns about low growth in the processing and manufacturing industry were somewhat reduced when businesses forecasted that production and business activities in the second quarter would be better than the first quarter. Specifically, 82.0% of businesses assessed that production and business activities in the second quarter would be better and remain stable compared to the first quarter (45.4% of businesses assessed that production and business activities would be better, 36.6% assessed that production and business activities would be stable) and only 18.0% of businesses assessed that it would be more difficult.

In addition, in the local sector, industrial production increased widely when the industrial production index in the first quarter of 2024 increased in 54/63 localities. In particular, some localities had a fairly high industrial production index with double to triple digits due to the high growth of the processing and manufacturing industry or the electricity production and distribution industry, such as Tra Vinh; Khanh Hoa; Bac Giang; Thanh Hoa; Ha Nam; Quang Ninh...

It is worth noting that, according to the survey results, manufacturing and processing enterprises in many localities highly appreciate the growth prospects in the second quarter, higher than the first quarter.

Optimism about production and business of processing and manufacturing enterprises and localities in the second quarter of 2024 is a good factor, but for the industry to have "complete joy" in the following months, stronger participation from management agencies is needed.

In addition to monetary policy and appropriate bank interest rates, from a production perspective, the business community wishes to be supported in strengthening the connection between circulation and production, promoting chain linkages to connect supply and demand; ensuring the distribution of goods associated with quality management and food safety; strongly promoting the model of chain linkages for agricultural development associated with industry and export. At the same time, they will continue to be supported in finding and actively expanding product consumption markets, proactively applying science and technology to improve product quality and competitiveness.

At the macro level, to ensure stable and sustainable growth of the processing and manufacturing industry in particular and the industrial sector in general, experts said that relevant management agencies need to review and drastically implement solutions and policies to support businesses in order to remove difficulties and obstacles, promote activities, production and business, especially for key industrial products such as textiles, leather, etc.

Quickly remove difficulties, unblock capital flows, create momentum for the real estate market to develop safely, healthily and sustainably to bridge the recovery of related industries.

Speed ​​up the implementation and disbursement of public investment capital, especially key national projects, highways, inter-regional and coastal projects and national target programs.

Proactively ensure electricity supply to meet consumer and production needs, especially during peak months in the second and third quarters. Implement plans to stabilize prices of input materials and construction materials to ensure supply-demand balance.

Source: https://congthuong.vn/san-xuat-cong-nghiep-de-niem-vui-tron-ven-hon-314176.html