Vietnam's industrial production surges 3.6% in April 2023: GSO

11 May '23

2 min read

Pic: Dong Nhat Huy / Shutterstock.com

Insights

Vietnam's IIP rose 3.6 per cent MoM and 0.5 per cent YoY in April 2023, but declined 1.8 per cent YoY for January-April 2023.
Slow global economic recovery and tightened monetary policies impacted the manufacturing sector.
MoIT plans to support businesses, facilitate global supply chain participation, and aid SMEs with tax exemptions and credit access.

Vietnam’s index of industrial production (IIP) for April 2023 saw a 3.6 per cent month-on-month (MoM) increase and a 0.5 per cent increase compared to the same period last year, according to the General Statistics Office (GSO). However, the country saw a 1.8 per cent year-on-year (YoY) decline in IIP for the first four months of 2023, a contrast to the 7.8 per cent growth experienced in the same period of 2022.

Sectors such as processing and manufacturing witnessed decline 2.1 per cent in IIP. Factors contributing to this decrease include the slow recovery of the global economy and tightened monetary policies in several countries, resulting in reduced consumption demand and export turnover, said Vietnamese media reports quoting the ministry of industry and trade (MoIT).

During the first four months of 2023, key industrial products experienced a drop in IIP, including textiles from natural fibres (11.1 per cent) and casual wear (10.4 per cent). Conversely, some products, such as garments made from man-made fibres, saw a 12.2 per cent increase in IIP.

To foster production growth and support businesses, the MoIT plans to monitor the production of various sectors, addressing any obstacles impeding development. The ministry also aims to connect domestic enterprises with foreign direct investment (FDI) and global companies to facilitate participation in global supply chains, the reports added.

Furthermore, the MoIT will continue to support small and medium-sized enterprises in their recovery and production development by proposing tax and fee exemptions or reductions, and facilitating credit access.

Fibre2Fashion News Desk (DP)

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