HCM City sees four key industries weakening

20-Feb-2020 Intellasia | The SaigonTimes | 6:02 AM Print This Post

HCM City saw a year-on-year drop in the January growth in its four key sectors of mechanical engineering, electronics, chemicals-rubber-plastics and food and foodstuff processing.

Speaking at a meeting to discuss HCM City’s socioeconomic performance on February 18, Le Thi Huynh Mai, director of the municipal Department of Planning and Investment, noted that the city’s index of industrial production (IIP) in January had dipped by 4%, while its IIP in January last year had expanded by 5.1 percent year-on-year.

Among the city’s four key industries, the electronics sector posted year-on-year growth of 2.8 percent in January, lower than the growth rate of 17.7 percent seen in January 2019, while the chemicals-rubber-plastics sector inched down by 0.99 percent year-on-year.

The first month of the year also saw the mechanical engineering and food and foodstuff processing sectors dip by 7.4 percent and 2.8%, respectively, against the year-ago period.

Pham Thanh Kien, director of the HCM City Department of Industry and Trade, attributed the downward pressure on the four key industries to the long Tet holiday, which fell in late January. Therefore, there were only 18 days in January for production activities.

As firms active in the mechanical engineering, rubber and plastics and food and beverage sectors focused on their production at the end of 2019 to serve the Tet holiday, in early 2020, these firms enhanced their focus on selling activities, resulting in a fall in these sectors’ indices.

Meanwhile, the electronics sector enjoyed a spike thanks to its stable consumption market.

HCM City Chair Nguyen Thanh Phong asked the municipal Department of Industry and Trade to present some effective solutions to stop the downward trend of the four key sectors in the first quarter of 2020.

Besides this, the department was told to review the goods that would benefit from the EU-Vietnam Free Trade Agreement to offer supporting policies for outbound shipments of these products in the coming months.

The city’s industrial production value accounts for some 45 percent of the southern key economic zone’s total industrial output value and contributes 26 percent of the nation’s industrial production.

To facilitate the development of the four key industries, HCM City has adopted various policies and run an array of support programmes for enterprises.

In addition, the municipal authorities have set up a database of industries to help firms search for information on machinery, equipment and new production technologies.

https://english.thesaigontimes.vn/74815/hcmc-sees-four-key-industries-weakening.html

 


Category: Economy, Vietnam

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