Industrial production up 10.5% in six months

Illustration photo

According to the GSO’s General Director Nguyen Bich Lam, the processing and manufacturing industry was a bright spot for the economy, driving the overall growth of the industry. 

“It is one of the three sectors, together with the agro-forestry-fishery and services, to achieve impressive growth and contribute a substantial 7.08% of gross domestic product (GDP) growth in the first six months of 2018, the highest rate in the first half of the year since 2011,” Lam said.

The index saw a year-on-year growth rate of 12.9% in the first quarter and 8.4% in the second one of 2018.

The manufacturing and processing industry witnessed the strongest growth at 12.7% during the two-quarter period, contributing 9.7% points to the overall index.

It was followed by the electricity production and distribution sector, which went up 10.4%, and the water supply and waste treatment sector, increased by 6.7%. The mining sector declined by 1.3% due to  a 5.7% drop in the exploitation of crude oil, gas and coal.

Mr. Lam also warned that the statistics showed a downward trend in industrial production when the IIP increased by 12.9% in the first quarter of 2018 and 8.4% in the second quarter compared to the same period of 2017. Likewise, the processing and manufacturing sector, which accounts for over 80% of the whole industry, increased 15.7% in Q1 and 10.1% in Q2.

In the second half of the year, the IIP would see a downward trend as the mining and petroleum industry would be down due to unfavorable weather conditions. 

Besides, the processing and manufacturing sector would slow because Samsung Electronics Viet Nam and Formosa Steel Corporation, which accounted for up to 40% of the industry, had reduced production due to lower consumption, Lam added.

The government-run office said the IIP in June increased by 12.3% compared to the same period last year. Among the index contributors, the mining sector dropped 3.6%; the manufacturing and processing industry climbed by 15.5%; electricity production and distribution sector up 10% and  water supply and waste treatment sector inched up 8%, on a yearly basis.

Last year, the country’s IIP enjoyed year-on-year increase of 9.4%, much higher than the 7.4% rise seen in the previous year. 

By Vien Nhu