Industrial production declines in HCM City in seven months
The index of industrial production (IIP) in Ho Chi Minh City went down 5.5% year-on-year in seven months of this year due to COVID-19 pandemic, according to the municipal Department of Industry and Trade.
In July alone, the index rose by 8.6% month-on-month, including manufacturing and processing up 9%, electricity production and distribution up 3.9%.
However, four key industries saw a 0.9% decrease in seven months but moved up more than 4.6 percentage point from the IIP, including electronics up 18.6%, and chemicals and pharmaceuticals up 7.3%.
According to local enterprises, domestic industrial production is facing pressure caused by imports.
Deputy Director of the department Nguyen Phuong Dong highlighted a need to issue breakthrough solutions and policies to support enterprises as a number of markets have yet to open their doors due to the pandemic.
Dong said local exports via border gates nationwide rose by 5.8% to US$24.7 billion in seven months. However, its shipments to European markets joining the European Union – Vietnam Free Trade Agreement only reached over US$2.74 billion, down 7% year-on-year.
China remains the city’s largest importer with a value of over US$6 billion, up 44.7% annually, followed by the US and Japan.
The total retail of goods and services surpassed VND718.1 trillion, down 3.8% annually during the period, including accommodation and dining services down 45.1% and travelling down 74.9%.
At the same time, inventory in the manufacturing and processing sector also increased by 5.5% year-on-year.
In the current context, experts suggested firms grasp of opportunities from domestic and foreign markets by meeting technical requirements such as origin of products and intellectual property protection.