The industry production index (IIP) growth rate and inventory index
both declined in the first six months of 2013 compared to the same
period last year, largely due to the ongoing economic difficulties.

According to the General Statistics Office, the IPP increased 5.2
percent in the first half compared to 6.1 percent last year, while the
inventory index fell 9.7 percent.

The GSO attributed the lower
inventory index to the new tendency of businesses to sell products for
cheaper than their production costs in an attempt to clear stock and
retrieve their investment.

However, the GSO said the
manufacturing sector’s inventory percentage was still high, at 75
percent in the first half of this year, well above the commonly regarded
“secure level” of 65 percent.

Manufacturing and processing,
which accounted of rover 70 percent of all industrial production,
expanded 5.5 percent in the first six months. But this was still a slip
from the 6.3 percent and beverages (up 10.5 percent).

Some
products saw significant growth such as cast metal (up 14.6 percent),
leather (up 16.5 percent), paper and paper products (up 14.5 percent)
and beverages (up10.5 percent).

But several major products stayed
flat and some even declined such as electricity production, which
generated 59.8 billion kWh in the first six month, up just 8.5percent
compared to the 14.7 percent growth over the same period last year.-VNA