"Stimulating" industrial production to achieve growth targets

Key industrial products increased

According to the Ministry of Industry and Trade, the results of industrial production in the first 5 months of 2024 showed many positive signals, creating momentum for economic recovery and development in the following months of 2024. Accordingly, the index of the whole industry (IIP) increased by 6.8% over the same period last year (the same period in 2023 decreased by 2.0%).

Workers at Leoch Battery (Vietnam) Co., Ltd., Becamex Industrial Park - Binh Phuoc. (Photo: tinhuybinhphuoc.vn)

Notably, some key industrial products in the first 5 months of 2024 increased sharply compared to the same period last year. For example, steel bars and angle steel increased by 33.8%; natural fiber woven fabrics increased by 20.2%; smart watches increased by 19.7%; rolled steel increased by 18.0%; urea increased by 14.6%; NPK mixed fertilizer increased by 12.6%.

Assessing industrial production in the first 5 months, the leader of the Department of Industry (Ministry of Industry and Trade) pointed out that the strong recovery of key industries such as textiles, footwear, steel, electronics, food processing, etc. has reflected a rapid recovery, which shows that the input sectors for production and business are recovering strongly.

“ These sectors will create very good momentum for growth in the following months, especially the processing and manufacturing sector which is showing many positive signs of recovery, ” said the leader of the Department of Industry.

Regarding the increase in the processing and manufacturing industry, the report of the Ministry of Industry and Trade shows that in the first 5 months, this industry also increased by 7.3% (in the same period in 2023, it decreased by 2.6%), contributing 6.4 percentage points to the overall growth rate; the electricity production and distribution industry increased by 12.7% (in the same period in 2023, it increased by 1.2%), contributing 1.1 percentage points; the water supply, waste and wastewater management and treatment industry increased by 6.3% (in the same period in 2023, it increased by 5.9%), contributing 0.1 percentage point; the mining industry alone decreased by 5.2% (in the same period in 2023, it decreased by 2.4%), reducing 0.8 percentage points to the overall growth rate.

The 5-month production index of some key secondary industries was also recorded to increase compared to the same period last year, in which the production of rubber and plastic products increased by 27.4%; the production of electrical equipment increased by 24.0%; the production of chemicals and chemical products increased by 20.1%; the production of beds, wardrobes, tables and chairs increased by 19.6%; the production of metal 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%.

Industrial production grew broadly with 55 localities having an industrial production index increasing compared to the same period last year, only 8 localities had an IIP decreasing 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 2024 is the result of the efforts of ministries, branches, and the business community to concretize solutions to reduce inventory and boost consumption of goods.

To achieve this result, some economic experts believe that associations and industries have actively strengthened business connection activities, promoting product consumption. Enterprises have restructured, reduced costs and production prices to enhance product competitiveness, thereby improving efficiency and adapting flexibly to the new situation.

More than 870 billion VND allocated for supporting industry development by 2025

Based on the economic development targets set by the Government and the National Assembly for 2024, the Ministry of Industry and Trade aims for an industrial production index increase of about 7-8% compared to 2023.

However, according to economic experts, in 2024, as a pillar of the economy, industrial production requires new, stronger and more comprehensive driving forces. According to economic experts, it is forecasted that in 2024, industrial production will still face difficulties, requiring many active measures to support production and measures to stimulate consumption to release inventories.

To regain high growth momentum, it is necessary to have a lot of support and facilitation from the Government, ministries, branches, banking system, and localities to continue to have more active measures to support industrial production, especially output for production through measures to stimulate domestic consumption, strengthen trade promotion to expand export orders, and release high inventory of goods at 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 will continue to proactively and effectively implement business support policies 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 - footwear and fundamental industries such as automobiles, mechanics, steel...

Providing more solutions for industrial development in the coming time, the leader of the Department of Industry affirmed that it is necessary to continue promoting 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 manufactured in Vietnam; gradually removing difficulties for enterprises to increase competitiveness, building technical barriers for imported products to support domestic products, increasing the localization rate...

In addition, the Association and the industry also closely monitor the world situation, especially the situation of Vietnam's large and traditional export markets, thereby promptly proposing solutions to remove difficulties to the Government and state agencies.

In addition, Deputy Prime Minister Tran Hong Ha recently signed Decision No. 71/QD-TTg amending and supplementing a number of articles of Decision No. 68/QD-TTg (dated January 18, 2017) on approving 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; promote foreign investment in the supporting industry sector.

The main activities of the program include: Surveying, assessing needs, developing standards and quality control regulations for supporting industrial products; organizing assessment and confirmation of the capacity of supporting industrial enterprises; organizing promotion programs to attract foreign direct investment in supporting industries; organizing fairs and exhibitions to display supporting industrial products, searching and developing domestic and foreign product consumption markets...

Decision No. 71/QD-TTg clearly states that the budget for implementing the program from 2021 to 2025 from the central budget's economic career source and other capital sources for supporting industry development activities managed and implemented by the Ministry of Industry and Trade is expected to be VND 870.7 billion, of which the state budget capital is VND 750.2 billion and other capital sources are VND 120.5 billion.

Source: https://congthuong.vn/kich-san-xuat-cong-nghiep-dat-muc-tieu-tang-truong-325647.html