High IIP rise, but worries still remain

28-Mar-2014 Intellasia | Thoi Bao Kinh Te Vietnam page 5 | 6:00 AM Print This Post

Industrial production in March 2014 continues to rise at a higher level than last month. However, it still has problems to be concerned about when consumption in the whole industry increases slowly but inventories still remain high.

The recently published data by the Ministry of Planning and Investment show that the Index of Industrial Production (IIP) in March 2014 is estimated to increase 16.9 percent compared to last month and 4.7 percent compared to the same period last year. In which, processing and manufacturing industry is still the driving force of the whole country’s industrial production. Specifically, processing and manufacturing industry soars 6.7 percent, electricity production and distribution climbs to 10.3 percent, water supply and waste disposal surges 5.7 percent while the mining industry drops 3.8 percent.

Generally, IIP of the first quarter of 2014 is up by 5.2 percent, higher than last year’s level of 4.9 percent. In which, processing and manufacturing industry sees remarkably increase at 7.3 percent compared to the same period in 2013, electricity production and distribution raises at 9.2 percent, water supply and waste disposal goes up 5.7 percent and mining industry falls 2.9 percent. Notably, some industries have higher production index in the first three months of the year than the same period of last year, such as textiles of 20.2 percent, costume production of 14 percent, footwear production of 19.4 percent, production of electronic, computer and optical products of 12.6 percent.

“Inventory index amounts to as much as 13.4 percent compared to the same period last year. Meanwhile, consumption of the whole processing and manufacturing industry only up by 4.3 percent. There are more inventories and less consumption. Clearly, the industry still has noticeable problems”, Thang further comments.

The data also show that as of March 1, 2014 consumption index of the whole sector of processing and manufacturing increases 4.3 percent compared to the same period of 2013, significantly lower than the average rate of recent time. Some processing and manufacturing industries sees amazingly high growth in the first two months of the year such as manufacturing of electrical equipment of 29.8 percent; leather and relevant products of 19.5 percent; motor vehicle of 16.6 percent; costume production of 13.5 percent; made-from-fabricated metal products of 10.5 percent; chemical and chemical products of nine percent; paper and made-from-paper products of 8.5 percent; food processing and made-from-rubber and plastic products of 7.6 percent.-

While consumption index in processing and manufacturing industry only increases slightly, inventories in this industry still remain high despite of having greatly reduced compared to the same period of the previous year. Inventory index as of March 1, 2014 appears at 13.4 percent compared to the same period last year (meanwhile inventory index of March 1, 2013 increased 16.5 percent compared to the same period of 2012).

Industries who have high inventories as of March 1 include: production of metal up by 126.8 percent; other transportation vehicles, up by 62.7 percent; drugs, medicines and other pharmaceutical products up by 61.4 percent; made-from-fabricated metal products up by 59.4 percent; chemical and chemical products up by 54.2 percent; leather and made-from-leather products up by 53.6 percent; paper and made-from-paper products up by 32.3 percent.

In addition, a series of other relevant indexes in processing and manufacturing industry do not have clear breakthrough yet. Specifically, inventories in processing and manufacturing industry as of March 1, 2014 are 84.4 percent. This month’s inventory increases than last month’s level of 77 percent. Industries with high inventories include the production of drugs, medicines and other pharmaceutical products of 181.5 percent, mechanical and mechanical products of 152.9 percent; production of beds, wards and tables of 122.6 percent and production of metal of 122.4 percent.

 


Category: Economy

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