Low growth industry in the first quarter

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Pictured: H.Anh.

This information was released by the General Statistics Office at a press conference on socio-economic development in the first quarter of 2020.

According to the General Statistics Office, affected by the Covid-19 pandemic, the industry in the first quarter of 2020 hada low growth rate compared to the same period last year. Added value of the whole industry in the first quarter of 2020 wasestimated to increase by 5.28%.

"The increase wasmuch lower than the increase of 10.45% in the first quarter of 2018 and 9% of the first quarter in 2019," said Nguyen Bich Lam, General Director of the General Statistics Office.

The main reason was the manufacturing and processing industry increased by only 7.12%, along with the mining industry which decreased by 3.18% due to the sharp decline in crude oil and natural gas (crude oil and natural gas fellby 10.4%).

According to the General Statistics Office, the Covid-19 pandemicevolved complicatedly and sharply in some countries, affecting sources of imported raw materials for industrial production, especially in the processing and manufacturing industries.

In addition, the Government's Decree No. 100/2019 / ND-CP stipulating sanctions foradministrative violations in the field of road and rail transport, effective January 1, 2020, which changed drinking beerhabits of the people, thereby affecting the beverage industry (9% decrease in beverages exports).

However, the production of drugs, pharmaceutical chemicals and medicinal materials had a high increase in the production index in the quarter compared to the same period last year, jumping28.3%.

The consumption index of the whole manufacturing in Quarter I / 2020 increased at a low rate of 2.8% compared to Quarter I / 2019 (much lower than the boostof 8% in Quarter I / 2019).

The inventory index of the whole processing and manufacturing industry was estimated to increase by 24.9% as of March 31compared to the same period last year (15.6% in the same period in 2019).

According to Pham Dinh Thuy, Director of the Department of Industrial Statistics (General Statistics Office), industry slowed down the growth rate affecting GDP growth.

“Along with many heavily affected industries such as aviation, tourism, etc., many key industries and industries of many localities across the country declined, which greatly affectedthe growth rate of the industry and GDP growth of the whole country,” Pham Dinh Thuy said.

Also according to Thuy, the growth of motor vehicle manufacturing industry was only 97% over the same period, much lower than the 7.9% increase in the first quarter of 2019. Part of this wasdue to the Japanese automaker slashing production because of the effects of the Covid-19 epidemic. Vinfast automobile brand has just entered the market but has had good consumption, a representative of the General Statistics Office said that without Vinfast, the growth of the industry wouldbe reduced even further.

Besides, the production of cement, iron and steel also decreased due to decreasing demand. "The growth rate of the construction industry decreased, the construction‘freeze’ so the consumption of cement and iron and steel decreased," Thuy added.

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However, according to Thuy, there are some fieldswith bright spots, with good growth such as pharmaceutical chemistry, coke production and refined petroleum due to good domestic consumption and exports. "Nghi Son petrochemical refinery after twoyears of joining the market has found a common voice with FDI enterprises and domestic enterprises, so it will continue to grow well," Pham Dinh Thuy said.