Wed. Feb 28th, 2024

The country’s Index of Industrial Production (IIP) increased 4.9 percent
over the first quarter last year, a record three year low.

General Statistics Office (GSO) experts attributed the low increase to
declined production in the processing and manufacturing industry, which
accounts for nearly 71 percent of the country’s total industrial
production.

The production of televisions decreased more than
that of any other product, dropping 21.1 percent to 504,000 units.
Textile industry output reached only 190.1 million square metres, down
11.3 percent, while seasoning powder decreased 6.5 percent to 58,900
tonnes.

However, production enjoyed strong growth in several
sectors including urea fertiliser, which grew 94.2 percent, mobile
phones, 20.6 percent, and motorbikes 13.7 percent.

The industrial sector’s inventory index stood at 16.5 percent, down 3.5 percent from the previous month.

However, the GSO said that the slowdown was not because of increased
consumption but rather because industrial producers turned to other
sectors or sold off products to retrieve capital.

To overcome
these difficulties, experts recommended industrial producers restructure
productions so they could churn out high quality products and sell them
to a wider market.

They also suggested the Government
provide firms with easier access to capital and improve tariffs and the
business environment.-VNA

By vivian