Industrial production faces difficulties in month of Lunar New Year

15-Feb-2014 Intellasia | VnEconomy | 6:00 AM Print This Post

Vietnam’s Index of Industrial Production (IIP) in the first month of 2014 was estimated to rise 3 percent from the same period last year, the Ministry of Industry and Trade (MoIT)’s report on industrial production situation and trade operation in January 2014 said.

According to the MoIT, although being the month of Lunar New Year, the country’s industrial production still faced difficulties due to weak purchasing power and people was more tight in spending as bonus at companies was lower than previous years while the weather tended to be warmer, leading to the increase in the inventories of goods for Tet.

On the other hand, January had five days-off (including Solar New Year and Lunar New Year) and the number of days-off during the Tet occasion prolonged, some enterprises halted production to save the operating costs.

As reported, some sectors saw high year-on-year rise in IIP, such as processing and preserving aquatic and fisheries products (up 17 percent), beer production (up 12.9 percent), fiber production (up 42 percent), production of cosmetic, soaps, detergents and sanitary products (up 12.2 percent), manufacturing of fabricated metal products (except machinery and equipment) increased by 23.8 percent, production of components electronic increased 33.4 percent, production of motors, generators, power transformers, distribution equipment and electrical controls increased 50.1 percent.

However, some sectors posted a year-on-year fall in IIP, including coal mining and collection (down 24.7 percent), crude oil exploitation (down 5 percent), natural gas exploitation (down 7.7 percent), tobacco production (down 6.2 percent), ready-made garment production (down 10.8 percent) and production of iron, steel and cash iron fell 4 percent.

The ministry also said that the inventory index in the processing and manufacturing industry sector as of January 1, 2014 increased 9.7 percent from the same period last year, of which, some sectors saw high inventory index such as milk processing and dairy products (up 30.4 percent), sugar production (up 21.4 percent), feed production for animal, poultry and seafood (up 33.2 percent) and tobacco production (up 43.5 percent).

Some sectors posted a year-on-year fall in inventory index including processing and preserving seafood and aquatic products (down 14.4 percent), woven fabric production (down 34 percent), clothing (down 4.6 percent) and cement production (down 15.3 percent).

 


Category: Economy

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