Ho Chi Minh City industrial revival well on course

HO CHI MINH CITY: With industrial production recovering month after month, Ho Chi Minh City enterprises are confidently resuming investment and restoring production, especially of key industrial products, according to the city’s Department of Industry and Trade.

The index of industrial production (IIP) went up by 9.7% year-on-year (y-o-y) in the first four months of the year, a positive signal at a time when the global economy has been hit by the Covid-19 outbreak, it said.

Bui Ta Hoang Vu, the department’s director, said in April the IIP increased by 3.3% from the preceding month, with manufacturing growing by 2.8% and electricity production and distribution by 25.6%.

A report from the city Statistics Office showed that production in the city’s four key sectors increased by 11.7% y-o-y in April, with electronics output up by 27.7%, mechanical engineering by 17.5%, food and beverages by 7.4%, and pharmaceutical chemicals by 2.4%.

Of tier-2 industrial sectors, 24 out of 30 expanded in April, with wood, bamboo and rattan processing and electrical equipment manufacturing sectors achieving robust growth, it said.

But traditional sectors saw a decline of 4.4%, with leather and leather-based products down by 3.2% and garment production by 12.6%.

The consumption index for the processing and manufacturing sectors increased by 11.9%.

The stockpile index came down for a number of sectors, including by 33.3% for coke and refined petroleum products, 19.7% for motor vehicle manufacturing, and 11.8% for other metal products.

Despite the pandemic and closed borders, the city’s exports managed to grow.

The Statistics Office said the city’s trade increased by 21.3%, as exports rose by 13.9% and imports by 27.7%.

Foreign direct investment is a major driver of import-export growth.

China remained the largest export market for HCM City’s enterprises, buying over US$3.5bil (RM14.38bil) worth of goods, up 11%, followed by the US, Hong Kong, Japan, and the EU.

Sales of retail products and services in the first four months of 2021 in HCM City rose by nearly 8% y-o-y. Revenues from them were worth 366.2 trillion Vietnemese dong (US$15.85bil or RM65.12bil).

In April alone growth was 23.3% y-o-y.

April saw a large number of promotions during the Hung Kings Memorial Festival (April 21), Reunification Day (April 30) and International Labour Day (May 1), which boosted sales.

With the retail market recovering, many businesses, especially foodstuff and consumer goods companies, such as Masan and Kido, saw revenues grow sharply in the first quarter compared to the same period last year.

Companies are now stabilising their production chains and cutting costs besides offering promotions to attract customers and stimulate demand. — Viet Nam News/ANN

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