In the first seven months of 2024, industrial production also continued to maintain positive growth momentum in 60 out of 63 provinces and cities nationwide.
According to data from the General Statistics Office (GSO), industrial production index in the first seven months of 2024 increased by 8.5% over the same period last year; in which the processing and manufacturing industry rose by 9.5%, continuing to be the growth driver of the entire industrial sector.
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| Industrial production maintains positive growth momentum. (Photo: moit.gov.vn) |
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 the Vietnamese economy ended the second quarter with a big surprise when GDP growth far exceeded market expectations of 6%. The growth has begun to show signs of spreading across sectors, of which the most surprising sector is manufacturing, recording a 10% growth compared to the same period last year.
On August 1, 2024, S&P Globe’s report showed that Vietnam Manufacturing Purchasing Managers’ Index (PMI) stood at 54.7 in July 2024, remaining at its highest level since May 2022. The report also highlighted that manufacturers increased output sharply in July amid a sharp increase in new orders. Moreover, the rate of output growth was faster than in June and was the second fastest rate, after the first month of data collection in March 2011.
According to the Ministry of Planning and Investment, in the first seven months of this year, Vietnam attracted more than 18 billion USD in foreign direct investment (FDI), up nearly 11% over the same period last year. Of which, the processing and manufacturing industry attracted the most capital, accounting for more than 70% of the total.
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| Increasing freight prices among the major challenges for domestic manufacturing enterprises. (Photo: TNO) |
However, from now until the end of 2024, the industrial and commercial production sector will face many difficulties and challenges. Geopolitical tensions and competition among major countries are increasing, and the economic recovery of Vietnam’s major trading partners is still slow. There are also risks of disruptions in the global supply chain, production chain, and increasing freight prices.
Therefore, numerous active measures are necessary to support production and stimulate consumption to release inventories and promote production. Accordingly, the Government, ministries, branches, banking systems, and localities need to apply more drastic measures to support industrial production, especially output for production through measures to stimulate domestic consumption, increase trade promotion to expand export orders, and clear inventory./.