Yen Bai industrial production in the first quarter of 2025: Decoding growth!

>> Yen Bai's industrial production value reached 100.89% compared to the double-digit growth scenario of 10.5%

>> Yen Bai strives for double-digit growth in industrial production

The positive signals from Yen Bai's socio -economic picture in early 2025 are undeniable. The GRDP growth rate reached 9.58%, putting Yen Bai in the top of the country and the Northern midland and mountainous region. Most notable is the strong breakthrough of the industrial sector, with the industrial production index (IIP) of the whole industry estimated to increase by 11.89% over the same period last year. This increase continues the good growth momentum of 2024 (9.23%) and shows a clear recovery after previous difficulties. However, the question is whether this growth is a sign of sustainable recovery, built on a reasonable structural foundation and long-term factors or is it just temporary?

A deeper analysis of the IIP index shows a multi-dimensional picture. The first quarter of 2025 witnessed a strong acceleration, with a growth rate of 11.89% compared to 9.18% in the same period in 2024. Notably, the growth occurred steadily over the months, especially in February with a spike of - 20.62%. However, it should be noted that the Lunar New Year factor may affect the monthly comparison indexes. Looking back at 2024, the IIP of the entire Yen Bai industry increased by 9.23%.

However, this growth was uneven across sectors. The mining industry witnessed a significant decline (-21.15%), while the main growth drivers came from the processing and manufacturing industry (+9.71%) and electricity production and distribution (+23.07%). This shows a clear differentiation within the province's industrial sector.

Yen Bai's industrial growth is not accidental but the result of many factors. First of all, it is the recovery of domestic and international market demand after a difficult period due to macroeconomic factors and the pandemic. This creates favorable conditions for businesses to boost production and expand scale. Export turnover of goods in the first quarter of 2025 increased sharply by 25%, reaching over 120 million USD, and total retail sales of goods and consumer service revenue also increased by 21.3%.

In addition, the proactive role of Yen Bai province in supporting businesses is undeniable. Preferential policies on taxes, fees, support for access to capital, trade promotion and simplification of administrative procedures have created a more favorable business environment. The issuance of Resolution No. 29 of the Provincial Party Committee on sustainable industrial development also shows the province's clear strategic direction.

The dynamism of local businesses also plays an important role. Many businesses have proactively innovated technology, improved competitiveness and sought new markets. In addition, the advantage of resources such as white stone, iron ore and large cassava raw material areas also creates conditions for related industries to develop. Investment in upgrading infrastructure, especially transport infrastructure and industrial zones, also contributes significantly to this growth.

While the growth figures are impressive, the question of long-term sustainability still needs to be raised. The current industrial structure of Yen Bai still depends significantly on the mining and processing of resources as well as energy production. This structure carries certain risks, especially sensitivity to commodity price fluctuations and the risk of resource depletion.

Regarding investment, capital flows into Yen Bai, especially into industrial zones, have had positive results. However, the quality of investment projects is the key factor in assessing sustainability. Do investors really bring modern technology and commit to sustainable development, or do they just focus on exploiting the advantages of resources and cheap labor? This is an issue that needs to be closely monitored.

In addition, although infrastructure has been invested, it is still a bottleneck. The lack of synchronization, especially the connection between industrial parks and the main transport system, still exists. The issue of clean land and site clearance is also a big challenge. In addition, human resource development is also an important factor to ensure sustainable development. Yen Bai has an abundant workforce, but the skill level is still limited. The skill gap between the requirements of enterprises and the level of workers is still large.

Compared to the regional and national context, Yen Bai is making remarkable progress. Yen Bai's GRDP growth in the first quarter of 2025 is superior to the national average. However, when placed in the context of the Northern midland and mountainous region, a very dynamically developing region, Yen Bai's 5th/14th position shows fierce competition. Yen Bai's IIP growth in the first quarter of 2025 is also significantly higher than the national average. This shows that Yen Bai's industrial sector has better growth momentum than the national average. Strong industrial growth is contributing to promoting the province's economic restructuring.

However, as analyzed above, besides the achievements, Yen Bai is still facing many difficulties and challenges. Limited infrastructure, difficulties in capital and finance, low technology and added value, limited market access and chain linkage, environmental pressure, limited human resources and obstacles in administrative procedures, land with potential unsustainable factors are barriers that need to be overcome.

From the above analysis, it can be seen that Yen Bai is going through a period of real industrial recovery and growth, but long-term sustainability is not yet fully guaranteed and requires stronger consolidation efforts. This is a rebound based on policies and investments, but still needs "leverage" from many areas to form a solid industrial structure, high resilience and harmonious development.

Hung Cuong

Source: https://baoyenbai.com.vn/12/349311/Yen-Bai-san-xuat-cong-nghiep-quy-I2025-Giai-ma-su-tang-truong.aspx