Processing and manufacturing industry records positive start to 2016

By EFR, Dam Tuan   April 28, 2016 | 08:23 pm GMT+7

Vietnam's Index of Industrial Production (IIP) climbed 7.9 percent in April compared to the same period last year, with the processing and manufacturing industry leading the way with 12.5 percent growth on year.

According to the General Statistics Office (GSO), industrial growth reached 7.3 percent in the first four months of 2016, lower than the 9.6 percent recorded during the same period last year. There were mixed fortunes across the sector, with electricity distribution and production rising 11.5 percent and water supply and sewage disposal climbing 8.5 percent, while mining fell 8.1 percent.

The GSO report shows that oil prices remained the main reason for the drop in the mining industry's IIP.

processing-and-manufacturing-industry-enjoys-april-spring-ed

The processing and manufacturing industry contributed positively to the economy in the first four months. Photo by VnExpress

Some of the industries to record high IPP growth in the first four months included metal production (up 21.4 percent); optical, computers and digital products (up 17.4 percent); furniture (up 16.5 percent); paper and pulp products (up 14.2 percent); and vehicle engines (up 14 percent).

In terms of provincial IIP growth, Thai Nguyen topped the pile with an impressive growth rate of 42.7 percent. It was followed by Quang Nam (up 32.8 percent), Can Tho (up 24 percent), Hai Phong (up 14.6 percent) and Bac Ninh (up 14.5 percent).

The processing and manufacturing industries' consumption rate in March rose 36.5 percent from the previous month and 12.7 percent compared with the same period last year. It also climbed 10.2 percent in the first quarter compared to the first three months of last year.

The textile industry was also up 27.6 percent, while metal production rose 26.2 percent and non-metal mineral production gained 14.9 percent.

The processing and manufacturing industry's inventory increased 8.9 percent in the first four months, lower than the same period last year (11.3 percent). Non-metal mineral production was up 3.8 percent and beverage production recorded a 2.3 percent gain, while electrical appliances and metal manufacturing fell by 0.7 and one percent respectively.

The industrial sector's workforce climbed six percent in the first four months compared to the same period last year, while the number of employees at state-owned enterprises increased 0.6 percent and workers at non-SOEs rose 4.3 percent. The number of workers in foreign direct investment enterprises rose 8.5 percent.

As of April 1, the mining industry's workforce was cut by 1.5 percent compared to the similar period last year, but the processing and manufacturing industry boosted employment by 6.6 percent; electricity distribution and production increased 1.6 percent; and water supply and sewage disposal rose 2.6 percent.

The Index of Industrial Production details the growth of various sectors in an economy such as mining, electricity and manufacturing. The IIP is a composite indicator that measures short-term changes in the volume of production of a basket of industrial products during a given period.

 
 
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