Industrial production grows 4%

Profit from industrial production in the period was estimated at VND265.64 trillion ($15.63 billion). GSO economists said the increase in the industrial production value was due to increased consumption of goods domestically and in export markets.

The country saw an increase of 6.8 per cent in growth of industrial production in May, as compared with previous months of this year, because of positive effects from the Government’s stimulus package for production, the office reported. However, the rate was still lower than those of between 14-17 per cent in previous years due to continued impacts from the global economic crisis.

In the last five months, the private sector saw the biggest growth with 7.3 per cent, and FDI grew by 3.7 per cent. But, industrial production declined 0.1 per cent in State-owned enterprises.

Eighteen out of 34 key industrial products saw a decline in production in the five months, including coal with the a rate of 7 per cent; seafood processing, 8 per cent; fertiliser, 13 per cent; cotton cloth, 26 per cent; ceramic tiles, 23 per cent; and passenger cars, 31 per cent. However, the production growth increased 19.9 per cent for crude oil to 7.3 million tonnes, 10.2 per cent for footwear products to 18.4 million pairs, 17.4 per cent for cement to 17.1 million tonnes, 13.2 per cent for steel used in construction to 1.9 million tonnes, 5.7 per cent for electricity to 31.8 billion KWh, and 3.3 per cent for washing machines to 244,000 units.

For all of this year, the country targeted an increase of 7.4 per cent in industrial production, compared with 14.6 per cent in 2008.