Industrial Production Recovers

12:00 AM @ Monday - 01 January, 1900

(VEN) - Despite a forecasted economic slowdown, Vietnam's industrial production grew sharply in February.

According to statistics from the Ministry of Industry and Trade (MoIT), the Index of Industrial Production (IIP) in February 2012 rose 10 percent over January 2012 and surged 22.1 percent from the same period of 2011.
Compared to the previous month, mining grew 0.1 percent; processing and manufacturing industries 14.9 percent; and power, gas and water production and distribution 6.1 percent.
Compared to the same month last year, mining grew 14.8 percent; processing and manufacturing industries 25 percent; and power, gas and water production and distribution 24.5 percent.
The country's industrial production in the first two months has grown 3.9 percent compared to the same period last year, with 5 percent increase in mining; processing and manufacturing industries 2.4 percent; and power, gas and water production and distribution 11.7 percent.
On the whole, industrial production has recovered since February after a heavy downturn in previous months.
Some industries have gained momentum and accelerated including power production with a 12.8 percent increase; clean coal production 4.8 percent increase; liquefied petroleum gas 34.4 percent; crude oil 11.6 percent; and cotton fabric 6.4 percent.
Sufficient supplies of raw materials were crucial for a stably increase in industrial production in the first two months. Apart from abundant sources of materials, markets for industrial products were also favorable, with increased export values to major markets including European Union (EU), Japan and the US. In February alone, the country's export value reached US$8.2 billion, 15.6 percent higher than that in the previous month and a 66.3 percent increase over the same month last year.
The country's industrial export value in the first two months totaled nearly US$15.3 billion, marking a 24.8 percent increase compared to the same period last year. Processed exports accounted for 9.75 billion in total export value, marking a 42.1 percent increase, and made up 63.8 percent in its total export volume. Additionally, exports of telephones, cellular phones and other components nearly tripled in export value; transport vehicles and spare-parts increased 86.4 percent; machinery and equipment also increased 56.5 percent.
Vietnamhas gradually switched from exporting raw materials and agricultural products to industrial products in recent months, which means that the role the latter has become increasingly important in the country's economic structure.
However, global economic depression still remains, affecting all component economies worldwide, and Vietnam is not exceptional. The domestic demand of goods and services has shrunk, with the total value of goods and services in circulation in February reaching VND186.5 trillion, a 3.8 percent decrease compared to the previous month.
Industry and Trade Deputy Minister Nguyen Nam Hai said that conventional export markets were economically difficult. For example, European countries were coping with public debts, the US with high inflation, Japan with economic depression resulting from the natural calamities last year. It was necessary to have more incentive policies for enterprises having managed to export to these markets.
According to Domestic Market Department Director Vo Van Quyen, MoIT will consider promulgated policies including export and production credit, and continue launching "Vietnamese to buy local" campaigns so as to boost up domestic consumption. In addition, domestic enterprises should apply drastic measures such as cutting production cost, and integrate new technology into production lines in order to increase their output.
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