Industrial production may rise over remainder of the year

If pandemic control is successful and measures to support and restore the economy are implemented consistently, Vietnam’s industrial production capacity will increase during the closing two months of the year.

Many localities have eased their pandemic prevention measures and are gradually taking steps to recover and develop their economy in the “new normal” under Resolution No. 128/NQ-CP, which stipulates the “Safe and flexible adaptation to and effective control of the Covid-19 pandemic”.

As a result, industrial production in October showed some positive signs of recovery, with the Index of Industrial Production (IIP) rising 6.9 per cent compared to September, according to a report from the Ministry of Industry and Trade (MoIT).

While industrial production gradually recovered in October, it was heavily affected in the first ten months of the year, the report emphasized.
Moreover, some localities are still implementing stricter pandemic prevention measures than those prescribed in Resolution No. 128 and Decision No. 4800/QD-BYT from the Ministry of Health, creating difficulties for business. The slow issuance of instructions also causes a lag in recovery.

According to MoIT, however, industrial production will see higher growth in the last two months of the year.

For this to happen, it is necessary to uniformly implement the government’s guidance and directions in Resolution No. 128 from the central to local levels, maximize the circulation of goods and labor, and avoid inconsistency between localities.

At the same time, adequately supplying raw materials and energy, addressing difficulties and obstacles facing important industrial projects, and boosting trade promotion activities, domestic market development, e-commerce, and connections between manufacturers, distributors, and consumers also need attention.