GSO report reveals growth of nearly 10% in industrial production for 2015.
The latest report from the General Statistics Office shows that industrial production in 2015 increased 9.8 per cent compared with last year. Manufacturing and processing maintained its leading position and was an important driving force in the economy.
It also contributed the most to overall growth in the industrial sector during 2015, with 7.5 percentage points (ppts), followed by mining with 1.4 ppts, generation and distribution of electricity 0.8 ppts, and water utilities and wastewater treatment with 0.1 ppts.
In secondary industry, some production increased much higher than last year, including electronic products, computers, and optical products, with 37 per cent, motor vehicles 26.7 per cent, leather and related products 17.4 per cent, and textiles 13.9 per cent.
Other sectors recorded positive growth, such as food processing with 8.5 per cent, beverages 7.4 per cent, chemicals and chemical product manufacturing 5.4 per cent, coal production 5.1 per cent, clothing production 5.1 per cent, tobacco 3.8 per cent, and pharmaceutical production 3.6 per cent.
A number of industrial products saw high production indexes against 2014, such as motor vehicles, TVs, mobile phones, steel, footwear, powdered and fresh milk, and aquatic feed. Those recording only slight increases or declines included crude oil, aquatic products processing, coal, sugar, textiles from synthetic fiber, and motors.
Industrial products with rising production indexes, 2015
Regarding consumption indicators, in November the manufacturing and processing sector rose 1.6 per cent against October and 10.2 per cent year-on-year. In the first eleven months the consumption index increased 12.6 per cent over the same period of 2014, in which sectors seeing high increases included electronics, computers and optical products, motor vehicles, and steel production.
The inventory index at December 1 had increased 7.4 per cent compared to last month and 9.5 per cent compared with the same period of 2014. Some sectors have small increases and some fell, such as electrical equipment manufacture, which increased 7.4 per cent, metal production down 4.2 per cent, bed, chair, and table manufacturing down 9.9 per cent, and tobacco production down 12.1 per cent.
The Ministry of Industry and Trade (MoIT) previously said that industrial production growth was due to domestic enterprises increasing imports of raw materials towards the end of the year to serve production and textiles, footwear, and electronic components having stable orders. Enterprises have also maintained good business and production, continued to see growth momentum, actively strengthened trade promotions, sought customers both domestically and overseas to diversify markets, increased exports, and developed the domestic market.
However, the global economy continues to recover slower than forecasted and still contains many risks, especially geo-political risks and unpredictable changes in financial markets, while a falling oil price also directly affected industrial production in Vietnam.
The formation of the ASEAN Economic Community (AEC) at the end of the year and the conclusion and implementation of free trade agreements (FTAs) are expected to create the conditions for development but also present challenges, especially in developed markets, while increasing competitiveness in domestic and international markets.
In general, in the context of the complex global economy, production and business in Vietnam faced many difficulties and challenges but the country’s economy in 2015 continued to make positive changes and recover in many respects, achieving relatively high growth compared with targets and previous years.