"Revealing" 10 localities with high industrial production index

The locality with the highest IIP increase is the mountainous province of Lai Chau.

Vietnam's economy had a smooth start in the first month of the third quarter of 2024, thereby contributing significantly to maintaining the positive recovery momentum of the economy.

According to the General Statistics Office, the industrial production index in the first 7 months of 2024 compared to the same period last year increased in 60 localities and decreased in 3 localities nationwide. Some localities had a relatively high increase in the total industrial production index (IIP) due to the high growth in the processing and manufacturing industry; and the electricity production and distribution industry.

The locality with the strongest increase in IIP index in 7 months is Lai Chau with an increase of 64.3%.

The locality with the strongest increase in IIP index in 7 months is Lai Chau with an increase of 64.3% over the same period, followed by Tra Vinh with an increase of 48.6%; Khanh Hoa increased by 45.4%; Phu Tho increased by 36.9%... Some other localities such as Son La, Cao Bang , Dien Bien also had high increase in IIP index.

According to the statistical agency, some localities have a fairly high IIP index due to the high growth of the processing and manufacturing industry and the electricity production and distribution industry.

Notably, localities with high production index of processing and manufacturing industry in the first 7 months of 2024 compared to the same period last year are: Lai Chau increased by 43.1%; Phu Tho increased by 38.4%; Bac Giang increased by 27.5%; Binh Phuoc increased by 17.1%; Thanh Hoa increased by 15.1%; Dien Bien increased by 8.8%.

Localities with high growth in the electricity production and distribution sector index in the first 7 months include: Khanh Hoa increased by 258.5%; Lai Chau increased by 66.4%; Cao Bang increased by 62.1%; Dien Bien increased by 51.8%; Son La increased by 35.2%; Thanh Hoa increased by 33.0%; Phu Tho increased by 15.3%.

The recovery trend in industrial production is becoming increasingly clear. In a recent report on the Vietnamese economy with the theme "Reclaiming the glory", HSBC Bank said that Vietnam ended the second quarter of 2024 with a big surprise when GDP growth far exceeded market expectations of 6%.

“ The Vietnamese economy has not had a strong boost for a long time and that awaited moment has finally come. In fact, Vietnam's growth results in the second quarter far exceeded HSBC's and the market's expectations of 6%. Combined with a slight upward adjustment to the growth of the first quarter of 2024, this result brought the growth of the first 6 months of the year to 6.4% compared to the same period last year,” HSBC's report stated.

Not only is the growth impressive, but what is encouraging, according to HSBC experts, is that growth has begun to spread across sectors. The most surprising sector is manufacturing, which grew 10% year-on-year.

On the contrary, some localities have decreased IIP index due to low growth or decrease in processing and manufacturing industry. Detailed data: Ca Mau increased by 1.5%; Gia Lai increased by 0.3%; Ha Tinh decreased by 8%; Quang Ngai decreased by 4.2%.

In addition, localities with indexes of the electricity production and distribution industry also recorded low increases or decreases: Quang Tri increased by 1.7%; Quang Ngai decreased by 16.9%; Thua Thien - Hue decreased by 16.1%; Lang Son decreased by 15.5%; Lam Dong decreased by 5.6%; Gia Lai decreased by 3.6%.

Localities with a decrease in the mining production index include: Ba Ria – Vung Tau down 14.3%; Lam Dong down 8.6%; Quang Tri down 4.7%; Lang Son down 3%; Thua Thien – Hue down 1.6%.

Efforts to accelerate in the last months of the year

The economy has recovered positively and is gradually regaining growth momentum. However, there are still difficulties. In the Asian Economic Update report, published in mid-July 2024, ADB also mentioned the challenges of the economy in the last months of 2024. According to ADB, the trade-related manufacturing sector - one of the main drivers of recovery - is expected to slow down in the coming time, while domestic demand remains weak.

Weak demand will affect domestic production and business operations. And indeed, there are still localities with low growth in key industrial production.

That means, production and business are still facing difficulties. That is probably also the reason why, in 7 months, there were still 125,500 enterprises withdrawing from the market, an increase of 10.7% over the same period, although there was still a positive point that there were 139,500 enterprises entering and re-entering the market, an increase of 5.8%.

Industrial production maintains positive growth momentum. Photo: TH

Sharing about the above issue, Mr. Pham Tuan Anh - Deputy Director of the Department of Industry (Ministry of Industry and Trade) expressed that despite achieving positive growth results in the first 7 months of 2024, Vietnam's industry still faces many challenges in the short and long term. It can be seen that although it has been improved, the internal strength of domestic manufacturing industries is still weak, the major bottlenecks of industry in the past have not been effectively overcome. Production still depends heavily on external factors, especially on the FDI sector. In addition, the added value of domestic industries is still low; supporting industries are underdeveloped, and there are not many domestic industrial products with high technology content.

To create momentum for industrial production development in the last months of the year, Mr. Pham Tuan Anh proposed 3 solutions: First, localities need to urgently have policies and solutions to support financial support for industrial enterprises, especially processing and manufacturing enterprises, so that enterprises have stable production and business conditions. Build and effectively implement industrial and supporting industry development programs in the area, focusing on improving the capacity of small and medium enterprises.

Second, production and business units need to closely follow the market to expand activities to find new customers; strengthen the connection of the production - consumption chain; balance inventory and consumption to ensure cash flow as well as product quality, and arrange production flexibly to maintain optimal production activities. It is important that associations and industries need to strengthen business connection activities, promote the consumption of each other's products. Enterprises restructure, reduce costs and production prices to enhance product competitiveness, thereby improving efficiency and adapting flexibly to the new situation. At the same time, enterprises and industry associations need to make the most of opportunities from new-generation free trade agreements to find new orders and customers. Be more active in coordinating with enterprises in the industry, associations and state agencies to seek and expand new export markets in addition to traditional markets, reducing inventory pressure.

Third, the Department of Industry will focus on key solutions to 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, footwear and foundation industries such as automobiles, mechanics, steel, etc. Promote the operation of new industrial production projects to serve export and domestic consumption, increase production development capacity and goods sources for export.

Source: https://congthuong.vn/lo-dien-10-dia-phuong-co-chi-so-san-xuat-cong-nghiep-tang-cao-335990.html