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Industrial production index on the rise

2013-07-09 11:02:52

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Ministry of Industry and Trade’s statistics show that the country’s index of industrial production (IIP) in the first half of this year grew 5.2 percent over the same period in 2012.


The (IIP) in the first three months, four months and five months of 2013 is 4.9, 5, and 5.2 percent more than the same periods of 2012, respectively. The processing and manufacturing sector’s IIP in the first and second quarter of 2013 is 4.6 and 6.9 percent higher than the same periods of 2012.


By sector, the IIP for water supply, waste and wastewater management and treatment, power production and distribution, processing and manufacturing, mining, garment, battery production, paper and carton production, and motorbike and automobile production industries in the first half of 2012 increased 9.6, 8.7, 5.7, 1.9, 38.5, 26.3, 23.4 and 18 percent over the same period of last year, respectively.


Industrial production is expected to further recover, while index of sales of some industries including beverages, garments and footwear production have remained stable. The index of sales of the industrial sector in the first five months of 2013 increased 7.5 percent over the same period of 2012.


The General Statistics Office (GSO)’s data indicate that the processing and manufacturing sector’s inventory index as of June 1, 2013 was 9.7 percent higher than the same time in 2012, while that recorded as of June 1, 2012 was 26 percent more than the same time in 2011. This index has decreased by 11.8 percent since January 1, 2013. Shuttle-knitted fabric, cement, footwear, electronic components and motorized vehicle production saw their inventory indexes decreasing by 31.8, 38.4, 25.7, 50.7 and 27.6 percent, respectively.


Production of textiles and garments, footwear, electronic components and computers, and mobile phones was favorable thanks to stable export markets and orders. The decreased inventory index was attributed to the strenuous efforts of the government, sectors and authorities at different levels in promoting sales of goods as well flexible performances in production and trading activities by firms.


Industrial production is expected to increase in the coming time. Businesses tended to import more materials for domestic production since February. To be specific, imports listed as goods that need to be imported amounted to US$55.8 billion in the first half of this year, up 16.7 percent from the same period of last year and accounting for 88 percent of the country’s total import value in the same period. Imports serving production of consumer goods and products for export, such as cashews, cattle feed, crude oil, phone and components, and plastics, increased more than 20 percent in value. Electricity, electrical and refrigeration equipment production tended to increase since summer began.


Thanks to the government’s efforts in promoting the real estate market, a number of housing projects for the poor were kicked off and this accelerated production of cement, steel and iron, all sectors that had experienced particularly high inventories.


2013 IIP is expected to be 5.7 percent higher than 2012′s