The non-State owned sector saw the highest growth, at 22.2 percent, followed by the foreign-invested sector with 17.3 percent and the State-owned sector with a meager 6.7 percent.

The output of many key industrial products was up over the same period last year. Vans increased by 96.2 percent to reach 24,200 units, passenger vehicles 78.6 percent to 39.600 units, and washing machines surged 54.2 percent to 338,800 units. Other increases included: TVs (34.4 percent), refrigerators (27 percent), powdered milk (36.6 percent), soap (25.5 percent) and processed seafood (20.8 percent).

Some other industrial products saw a modest growth during the period: electricity generated rose 13.8 percent to 42.7 billion kWh, cement 11.8 percent to 20.8 million tonnes, fertiliser 4.9 percent to 1.43 million tonnes, and rolled steel by 4.7 percent to 2.27 million tonnes.

Other industrial products saw a decrease, with crude oil down 6 percent to 8.56 million tonnes and natural gas down 0.2 percent to 4.34 billion cu.m.

In the first seven months of the year, the value of high-scale industrial production in provinces like Vinh Phuc, Ha Tay, Binh Duong, Hai Duong and Hai Phong City saw a high growth, ranging from between 18.2 to 30.9 percent year-on-year.

The economic hubs of Hanoi and HCM City showed minimal increases of 14.7 and 13 percent respectively, lower than the average industrial output growth of 16.4 percent.

Slowdown

Most industrial figures in the first seven months of the year were up, but those in July fell by 1 percent against June in almost every sector.

Commenting on this issue, GSO official Quang Ha said, “the prices of input production materials are still climbing, which makes production and consumption more difficult. Enterprises must therefore slowdown production”.

The consumer price index (CPI) in July increased by only 1.13 percent over the previous month, the lowest rise since earlier this year, but the CPI in the first seven months of year was up 21.28 percent year-on-year, which enterprises consider to be too high.

Common lending interest rates range from 20 to 21 percent a year, making it expensive for producers to get bank loans.

Many are worried that production for the rest of the year will suffer as the 31 percent rise on petrol and oil prices will impact on the CPI and potentially derail the Government efforts to curb inflation.

The Ministry of Industry and Trade has set a target of VND674 trillion for the country’s industrial output this year, focusing on the development of competitive products with high added value from sectors including agriculture, forestry and fisheries.

Meanwhile, the total trade deficit for the first seven months has hit US$15 billion, up 37 percent from last year. Imports in the first seven months totaled US$51.9 billion, up 56.8 percent year-on-year, while exports rose 37.7 percent to US$36.9 billion.