Industrial production soars, confident to meet the targets

	Industrial production up 9.5% this year
	Programme on key industrial production eyes FDI firms
	Driving forces for industrial property market sought

The orientation of industrial production development in the near future is focusing on depth, creating a breakthrough in improving productivity and quality. Photo: Nguyen Thanh.

Strongest increase in four years

According to the latest report of the Ministry of Industry and Trade, since the beginning of the year, the index of industrial production (IIP) has increased slightly each month. The growth rate respectively from January to the end of September was: 7.9%; 9.2%; 9.2%; 9.1%; 9.5%; 9.4%; 9.4%; 9.5% and 9.6%.

In each specific group, it shows that the situation continues to have positive changes. Specifically, the IIP of manufacturing in 9 months increased by 10.8% compared to the same period last year. Some industries saw a high increase in the production index in 9 months compared to the same period last year, contributing to the overall growth of the whole industry including: coke manufacturing, refined petroleum products increased by 38.3%; metal production increased by 36.7%.

The Ministry of Industry and Trade said thatthe industry in the past 9 months grew stronglywith the growth rate of added value of 9.56% compared to the same period in 2018, the highest increase in the past 4 years. In particular, the manufacturing industry is still a “bright spot”, making a major contribution to the growth of the industrial sector and the whole economy.

Specifically, the manufacturing of electronic products, computers and optical products began to recover from the middle of the second quarter of 2019 and is regaining its growth momentum. In August and September alone, IIP growth of this sector was respectively 20.1% and 14.6% compared to the previous month and increased by 6.3% compared to the same period last year. "This is a positive sign forthis industry after continuous negative growth compared to the same period last year in the first 6 months. The main reason is due to Samsung phone company introducing the Galaxy Note 10 and boosting production for export,” the Ministry of Industry and Trade said.

In addition to processing and manufacturing industries, the Ministry of Industry and Trade clearly points out the remarkable point in industrial production in the first 9 months of the year is the production and distribution of electricity to ensure adequate supply for production and consumption;mining industry initially increased slightly by 2.68% after consecutive years of decline.

The growth rate of 9-10% is positive

In 2019, the Ministry of Industry and Trade sets an IIP target of about 9-10% compared to 2018. In particular, the mining industry increased by 91%; manufacturing and processing industry increased by 13%; electricity production and distribution increased by 9.5-10%. With growth momentum after three quarters of the year, the overall growth is forecasted to be positive.

From now until the end of the year, the Ministry of Industry and Trade determined to continue to follow market developments and direct delegations to work with localities to solve difficulties for key projects and support businesses in implementing the best business plan to contribute to GDP growth.

In addition, the Ministry will also promote the development of supporting industries to increase the localization rate of products; effectively implementing supporting industry to support projects under the Supporting Industry Development Program which has been approved in some key industries such as automobile, electronics, textile and footwear industries. The important point proposed by the Ministry of Industry and Trade is to promptly remove difficulties and obstacles, accelerate the completion and putting into operation of key industrial projects, construction and energy in order to enhance production and business capacity of the economy, contributing to added value and improving economic growth in the last months of the year.

According to Mr. Truong Thanh Hoai, Director of Industry Department (Ministry of Industry and Trade), in recent years, the process of industrialization has contributed greatly to the socio-economic development of the country such as the largest contribution rate to the state budget; becoming a key export industry with a high growth rate. However, the industrialization process of Vietnam has many problems, because the value the domestic industry created is still low. Three facts related to this issue include: Vietnam's production efficiency in terms of added value and export remains is modest; the main factor to create structural and value changes is still FDI enterprises, not domestic enterprises; Vietnam's export of goods still depends heavily on imported raw materials.

Industrial production gained momentum in 2019 VCN- The favorable conditions and the close "support" were outlined by the Ministry of Industry and Trade. ...

Regarding the issue of industrial production development, Minister of Industry and Trade Tran Tuan Anh said: Vietnam's industrial development should follow Resolution No. 23-NQ/ TN dated March 22, 2018 of the Party Central Committee on the orientation of formulating national industrial development policies by 2030, with a vision to 2045. In particular, the main content is the harmonious combination of industrial development in both width and depth, focusing on development, creating a breakthrough in improving productivity, quality, competitiveness and domestic added value of industrial products.

Minister Tran Tuan Anh assigned the Department of Industry to review and research supporting industries, mechanical engineering, and automobile industry to implement the development of key industries in the next period. At the same time, the leader of the Industry and Trade sector also asked the Industry Department to coordinate with the Department of Multilateral Trade Policy, the Department of Trade Remedies, and the Department of Trade Promotion to develop a new policy for industry priority to attract investment for large-scale projects, associated with technology transfer and ownership.