Industrial production has seen significant progress in the thirdquarter of this year compared to the two previous quarters. However,there is no room for complacency as industrial production, considered asa key factor to develop the national economy, has declined since 2011.The Vietnam Economic News reports.
At theGovernment’s regular meeting last September, Prime Minister Nguyen TanDung insisted on striving for gross domestic product (GDP) growth ofaround 5.4 percent and a consumer price index (CPI) of about 7 percentthis year.
This was the Government’s key economictargets for 2013, reflecting the efforts by the Party and State incontrolling inflation, stabilising the macro economy and striving forreasonable economic growth.
To successfullyimplement these goals, a breakthrough in industrial production isnecessary. Enhanced industrial production is not only an urgentrequirement for the economy now but also for next year.
Statistics show that from the beginning of this year, Vietnam'seconomic growth has been mainly on the basis of the development of theservices sector, contributing 2.71 percent to the overall growth rate of5.14 percent GDP growth rate in the first nine months.
However, only services related to education and hospitality have beendeveloped. So the growth of the service sector is not sustainable andwould not be enough to create a breakthrough in the national economy.
The agro-forestry-fishery production continues tobuild on the comparative advantages of tropical agriculture, but thegrowth rate of this sector has also tended to decrease. In particular,the sector only registered a 2.39 percent growth in the first ninemonths of the year, lower than the 2.5 percent increase registered inthe same period last year and the 3.74 percent increase in the sameperiod of 2011. In addition, this sector is often heavily affected bynatural disasters.
Boosting industrial production isconsidered as a key factor to develop the national economy as pointedout in the 2011-2020 Socioeconomic Development Strategy, 2011-2015Socioeconomic Plan and Socioeconomic Planning for 2013.
Unfortunately, industrial production has declined since 2011: theindustrial production index rose by 6.8 percent in the first nine monthsof 2011, but only by 5.4 percent in the same period of 2013; industrialGDP contribution increased 7.43 percent in the first nine months of2011, but only 5.18 percent in the same period of 2013.
However, a gradual recovery of the industry from the beginning of theyear has been seen, with the index of industrial production growing by4.9 percent in the first quarter, 5.2 percent in the second quarter, and5.4 percent in the third quarter. These achievements resulted from thedevelopment of the processing and manufacturing sector with highmanufacturing and consumption of export products.
Industrial production has seen significant progress in the third quartercompared to the two previous quarters as industrial activities in anumber of industrial centers such as Ho Chi Minh City and Hanoi werevastly improved.
As capital investment in industrialdevelopment is limited, industrial investment should be focused on HoChi Minh City, Dong Nai, Ba Ria-Vung Tau, Hanoi, Binh Duong and BacNinh. These six localities are making up nearly 70 percent of totalindustrial production value of the country.
Nextare six provinces and provinces ranking second-class in terms ofindustrial production including Quang Ngai, Quang Ninh, Vinh Phuc, HaiPhong, Hai Duong and Long An which make up a combined nearly 15 percentof the total industrial production value.
To create abreakthrough in industrial production, it is necessary to invest in keypoints in these industrial centres as well as key industrial productsin these areas. That may be the best solution to boost the country’seconomy in the final months of this year and create momentum for thefirst quarter of the next year.-VNA
At theGovernment’s regular meeting last September, Prime Minister Nguyen TanDung insisted on striving for gross domestic product (GDP) growth ofaround 5.4 percent and a consumer price index (CPI) of about 7 percentthis year.
This was the Government’s key economictargets for 2013, reflecting the efforts by the Party and State incontrolling inflation, stabilising the macro economy and striving forreasonable economic growth.
To successfullyimplement these goals, a breakthrough in industrial production isnecessary. Enhanced industrial production is not only an urgentrequirement for the economy now but also for next year.
Statistics show that from the beginning of this year, Vietnam'seconomic growth has been mainly on the basis of the development of theservices sector, contributing 2.71 percent to the overall growth rate of5.14 percent GDP growth rate in the first nine months.
However, only services related to education and hospitality have beendeveloped. So the growth of the service sector is not sustainable andwould not be enough to create a breakthrough in the national economy.
The agro-forestry-fishery production continues tobuild on the comparative advantages of tropical agriculture, but thegrowth rate of this sector has also tended to decrease. In particular,the sector only registered a 2.39 percent growth in the first ninemonths of the year, lower than the 2.5 percent increase registered inthe same period last year and the 3.74 percent increase in the sameperiod of 2011. In addition, this sector is often heavily affected bynatural disasters.
Boosting industrial production isconsidered as a key factor to develop the national economy as pointedout in the 2011-2020 Socioeconomic Development Strategy, 2011-2015Socioeconomic Plan and Socioeconomic Planning for 2013.
Unfortunately, industrial production has declined since 2011: theindustrial production index rose by 6.8 percent in the first nine monthsof 2011, but only by 5.4 percent in the same period of 2013; industrialGDP contribution increased 7.43 percent in the first nine months of2011, but only 5.18 percent in the same period of 2013.
However, a gradual recovery of the industry from the beginning of theyear has been seen, with the index of industrial production growing by4.9 percent in the first quarter, 5.2 percent in the second quarter, and5.4 percent in the third quarter. These achievements resulted from thedevelopment of the processing and manufacturing sector with highmanufacturing and consumption of export products.
Industrial production has seen significant progress in the third quartercompared to the two previous quarters as industrial activities in anumber of industrial centers such as Ho Chi Minh City and Hanoi werevastly improved.
As capital investment in industrialdevelopment is limited, industrial investment should be focused on HoChi Minh City, Dong Nai, Ba Ria-Vung Tau, Hanoi, Binh Duong and BacNinh. These six localities are making up nearly 70 percent of totalindustrial production value of the country.
Nextare six provinces and provinces ranking second-class in terms ofindustrial production including Quang Ngai, Quang Ninh, Vinh Phuc, HaiPhong, Hai Duong and Long An which make up a combined nearly 15 percentof the total industrial production value.
To create abreakthrough in industrial production, it is necessary to invest in keypoints in these industrial centres as well as key industrial productsin these areas. That may be the best solution to boost the country’seconomy in the final months of this year and create momentum for thefirst quarter of the next year.-VNA
