Vietnam’s industrial production expands 11.2 pct in 8 months

The growth, higher than the 8.2% in the same period last year, was mainly fuelled by crude oil production, which expanded by 510% and 520% in June and July respectively, compared to last year’s corresponding period.

The GSO attributed the oil sector’s strong IPI rise to the opening of the Nghi Son Oil Refinery and Petrochemical complex – the country’s largest of its kind – in the central province of Thanh Hoa in June and another, Binh Son, in central Quang Ngai province – which resumed operations in the same month after annual maintenance.

Some sectors in the secondary industry (dominated by the manufacturing of finished products) also saw high growth, such as coal production, up 120%; refined oil production (up 60%), mineral mining support services (up 39%), electronics, computers and optical products (up 18%) and pharmaceuticals (up 17.5%).

Many primary products rose substantially against the same period last year, including oil and gas (up 51%); handsets components (up 37%); liquefied petroleum gas (up 25%) and televisions (up 22%). Other items included synthetic fibres (up 21%); refined sugar (up 18%) and seafood feed (up 17.6%).

However, some products saw slight declines in production due to lower demand, such as mobile phones (down 2.3%) and urea fertiliser (down 3%).

Among localities recording higher growth in industrial production against 2017’s corresponding period, the northern port city of Hai Phong led with growth of 24%. It was followed by four other northern provinces of Bac Ninh, Vinh Phuc, Thai Nguyen and Hai Duong with respective rises of 20%, 14%, 12% and 9.3%. Meanwhile, Hanoi and HCM City witnessed a modest IPI increase of 7.5%.

As of August 1, the number of labourers in the industrial sector increased 3% from the same period last year, with a 1% rise in the State-owned sector, 3.2% in the non-State-owned sector and 3.5% in the foreign-invested sector, the GSO said.

Earlier, the GSO predicted the IPI may slow down in the rest of this year, reflecting the increasing importance of sustainable development. 

The office recommended strengthening connectivity among businesses and the enhancement of their capacity to join supply chains, thus making industry grow more sustainably.

It is necessary to continue reducing business conditions, simplifying administrative procedures, enhancing the quality of online public services and using advanced technology to boost the growth of industry.

The office also stressed the need to handle stagnant and ineffective projects by the end of 2018, thus giving more resources to the development of industry.