Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

According to the General Statistics Office, the added value of the entire industrial sector in the first six months of 2024 is estimated to increase by 7.54% over the same period last year (first quarter increased by 6.47%; second quarter increased by 8.55%). Of which, the processing and manufacturing industry increased by 8.67%, contributing 2.14% to the increase in total added value of the entire economy; The electricity production and distribution industry increased by 13.26%, contributing 0.5%; The water supply and waste treatment industry increased by 7.13%, contributing 0.04%. The mining industry alone decreased by 7.22%, reducing the overall increase by 0.24%.

The industrial production index in the first six months of the year compared to the same period last year increased in 56 localities and decreased in seven localities across the country. Some localities have had a fairly high increase in the IIP index thanks to the processing and manufacturing industry; The electricity production and distribution industry increased sharply. Some localities have a low increase or decrease in the IIP index due to the processing and manufacturing industries; The production, electricity distribution and mining industries increased slightly or decreased.

Industrial production recovery will help boost export growth. Illustrative photo: N.T

According to the representative of the Department of Industry and Construction Statistics (General Statistics Office), it can be seen that industrial production continues to recover from the first quarter and grows with a clearer trend in the second quarter, the production index next month's industrial industry is higher than the previous month, the next quarter is higher than the previous quarter: the first quarter increased by 5.9%; The second quarter is estimated to increase by 9.5%; The first six months of 2024 are estimated to increase by 7.7% over the same period last year. Of which, 3/4 of level I industries (including: processing and manufacturing industries; electricity production and distribution; water supply and wastewater and waste treatment) increased compared to the same period last year with the increases are: 8.5%; 13% and 6.3%.

Notably, the processing and manufacturing industry (which accounts for over 74% of the added value of the entire industrial sector) continues to grow with a clearer trend, with an increase of 8.5% in the first 6 months of the year compared to the same period last year, while the same period last year decreased by 1.8%. Many important industries in the processing and manufacturing industry in the first six months of 2024 increased compared to the same period last year. In particular, the manufacturing industry of electronic products, computers and optical products - one of our country's key export industries in recent times, has had the clearest recovery, with an increase of 0.3% in the first quarter, the second quarter increased by 17.4%, the first six months of the year increased by 8.6%.

In the processing and manufacturing industry, product inventories decreased, reflected in the increased production index, the consumption index increased higher than production, and the inventory index decreased. Specifically, the production index increased by 8.5%, the consumption index increased by 10.8% (the increase in the consumption index was 2.3% higher than the production index), the inventory index at the time of production increased by 10.8%. June 30, 2024 is expected to increase by 9.6% compared to the same time last year, much lower than the inventory increase of 19.9% ​​at the same time in 2023. The average inventory rate in the entire processing and manufacturing industry increase in the first six months of 2024 is 76.9%, much lower than the increase in the same period in 2023 which is 83.1%.

Besides the positive points, industrial production in the first six months of 2024 has some difficulties because the growth rate in the first six months of this year is higher than in 2020 but lower than the growth rate in the first six months of 2021 and 2022. It is seen that the industry has not been able to fully recover like before the Covid-19 pandemic.

At the same time, some industries in the processing and manufacturing industry are facing difficulties or signs of recovery are not really clear, the production index decreased compared to the same period last year: automobile and diesel vehicle production engine decreased by 5.5%; Motorcycle and motorbike production decreased by 3%; Cement, lime, and plaster production decreased by 2%; Beer and malt production decreased by 3.9%...