Industrial production getting back on track

Production and business activities are gradually moving towards the “new normal” with social distancing measures having been eased.

The Index of Industrial Production (IIP) in October was up 6.9 per cent against September but down 1.6 per cent year-on-year, according to the General Statistics Office (GSO), while rising 3.3 per cent year-on-year in the first ten months.

Industrial zones were hit hard by social distancing, which resulted in production chain disruptions that affected manufacturing and production in particular.

Now posting impressive development, manufacturing and production is again the main growth driver and playing a key role in economic growth. The sector’s IIP in the first ten months increased 4.5 per cent year-on-year, contributing 3.99 percentage points to its growth. Manufacturing and production also attracted a large volume of FDI, according to the GSO.

Industrial enterprises are now working at full capacity to fulfill orders over the closing months of the year. If pandemic control is sound and businesses in the northern and central regions of Vietnam accelerate production, then industrial production may grow more in the fourth quarter than in the third, Minister of Industry and Trade Nguyen Hong Dien predicted.

The Industry Agency at the Ministry of Industry and Trade will coordinate with relevant units to maintain stable conditions and promote vaccinations during the remainder of the year so that businesses can operate well.