VN industrial production slows down in 2016
Viet Nam’s index of industrial production (IIP) rose by 7.5 per cent this year, much lower than the 9.8 per cent growth seen in 2015.
The nation’s industrial production slows down in 2016 with 7.5 per cent growth, lower than last year’s figure.
The main reason is the strong decline in the mining industry of around 6 per cent, the General Statistics Office (GSO), which released the data, said.
On a positive note, the processing and manufacturing sector, which accounts for 75 per cent of total industrial production in the country, increased by 11.2 per cent. While electricity production and distribution saw a growth of 11.5 per cent, the water supply and waste treatment sector rose 7.2 per cent.
Industrial products that posted high IIP this year includes televisions (up 70 per cent), steel (up 27 per cent), automobiles (up 22 per cent), animal feed (up 18.3 per cent), cement (up 15 per cent) and milk powder (up 13 per cent).
The IIP, however, declined for products such as mobile phones (down 11 per cent), crude oil (down 10 per cent), sugar (down 8.3 per cent) and fertiliser (down 6 per cent).
Among the provinces and cities that saw significant industrial production growth are the central province of Quang Nam at 30 per cent; the northern provinces of Hai Phong and Thai Nguyen at 24 per cent and 17 per cent, respectively; the capital at 7 per cent; and HCM City, the southern hub, at 7.5 per cent.
Despite a lower industrial production growth, there was an 8.4 per cent rise in the consumer index of the manufacturing and processing industry and an 8.1 per cent increase in its inventory index, the lowest level in the past few years, which is proof that the national economy is well on track to recovery and development, Nguyen Bich Lam, head of GSO, said.
The Ministry of Industry and Trade has already mapped out next year’s development plan for the industrial sector, and forecast an 8 per cent rise in industrial production against this year.