Hanoi industrial production growth slows to 4.44pct in Q1

01-Apr-2020 Intellasia | Hanoi Times | 6:02 AM Print This Post

Such a growth pace is the slowest in many years, due to growing impacts of the Covid-19 pandemic.

Hanoi`s Index of Industrial Production (IIP) in March expanded 0.9 percent month-on-month and 4.7 percent year-on-year, leading to an increase of 4.44 percent year-on-year for the first quarter, according to the Hanoi Statistics Office.

The first-quarter growth pace is the slowest in many years, due to growing impacts of the Covid-19 pandemic, compared to an expansion of 6.71 percent recorded in the January March period last year, said the municipal Statistics Office in its monthly report.

The report suggested a disruption of global supply chains due to stalled production in China has led to a shortage of input materials for local industrial sectors. As a result, companies are forced to scale down or even halt operations.

Upon breaking down, the mining industry’s output saw a decrease by 15.3 percent year-on-year in the first quarter, while the manufacturing and processing industry expanded 4.3%, respectively.

Production and distribution of electricity rose 5.9 percent year-on-year; water supply, sewage treatment and water collection was up 7.1%.

Major industrial subsectors that saw their output down in the January March period were beverage (-22 percent year-on-year), textile (-3.7%), electricity equipment (-5.8%), machinery (-11%).

Meanwhile, other subsectors have increased sharply due to growing demand during the pandemic, including food processing up 6.8 percent year-on-year, medicine and drugs up 32.4%; and electronic products up 23.5%.

In March, Hanoi’s consumer price index (CPI) declined 0.89 percent month-on-month but was up 0.1 percent against last December and 4.36 percent year-on-year.

As a result, the average CPI of the first quarter grew 5.23 percent year-on-year.

Statistics revealed eight out of 11 commodity groups, which are components of the basket for CPI calculation, witnessed monthly decreases in prices, with transportation posting the highest decline of 4.19%, followed by culture, tourism and entertainment with 2.97%; food and catering services with 0.77%.

As of March 23, Hanoi attracted $646.4 million in foreign direct investment (FDI). Of the total, the city government approved 170 new projects and other 36 received additional capital worth a combined of $389 million, while foreign investors contributed $257.4 million in capital to other projects.

Total retail sales of consumer goods and services in Hanoi in the first quarter are estimated at VND135.7 trillion (US$5.78 billion), up 2.3 percent year-on-year, much lower than the growth rate of 10.1 percent in the same period last year.

As tourism is among the hardest hit sectors by the Covid-19 pandemic, the number of foreign tourists coming to Hanoi declined 36.9 percent year-on-year to 756,000 during the period, while that of domestic tourists stood at 1.9 million, down 33.6%.

In the January March period, Hanoi’s exports reached $2.74 billion, down 18.1 percent year-on-year, while imports were down 21.3 percent to $5.83 billion, resulting in a trade deficit of $3.09 billion.

The city’s state budget revenue reached VND67.5 trillion (US$2.87 billion), up 9.4 percent year-on-year, of which revenue from crude oil reached VND518 billion (US$21.91 million), down 39%, and domestic revenue reaching VND67 trillion (US$2.85 billion).

Hanoi’s gross regional domestic product (GRDP) growth is estimated at 3.72 percent in the January-March quarter, lower than an expansion of 6.99 percent recorded in the same period last year.

This makes the growth target of 7.5 percent onwards in 2020 an increasingly difficult task.

http://hanoitimes.vn/hanoi-industrial-production-expands-444-in-q1-311556.html

 

Category: Economy, Vietnam

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