With Covid-19 has been well implemented, industrial production in October 2020 continued to maintain a higher growth momentum than the previous month to serve demand for industrial products in peak months at the end of the year, making positive contributions to economic recovery when the disease is under control. The index of industrial production (IIP) of manufacturing in October 2020 reached a high increase of 8.3% over the same period last year, although lower than an increase of 10.8% in October 2019 but higher than IIP of August and September 2020 (6.1% and 3.2% respectively); contributed up to 7.4 percentage points to the overall growth of the October IIP. This spotlight showing a strong recovery of manufacturing activities, opening up that the industry will recover quickly and grow again as desired.
Manufacturing achieved the above results thanks to positive contributions of industries: Production of electronic products, computers and optical products in October 2020 increased by 16.9% over the same period, mainly due to high growth by 30.3% of phone components; production of coke coal and refined petroleum increased by 22.6%; food production and processing rose by 10.9%; metal production by 15.2%; electrical equipment manufacturing by 10.6%; medicine, pharmaceutical chemistry and medicine production increased by 25.4%.
Due to the negative impact of Covid-19 pandemic, for 10 months of 2020, manufacturing’s IIP increased by 4.2% over the same period last year (the same previous last year was 10.8%), contributed 3.6 percentage points to the overall growth of the industry and higher than other’s contribution. This shows that the manufacturing is always a driving force leading the whole industry and the economy to grow.
Some key manufacturing products in 10 months of this year increased significantly compared to the same period last year, meeting both the domestic market’s consumer demand and boosting exports.
Export of manufacturing products is also a bright spot of the economy, continuing to be main contributors to export’s growth rate of October 2020 with a turnover of 22.53 billion USD, up by 9% over the same period last year. Of which, the export turnover of some items with high growth rates are: computers, electronic products and components rising by 13.6%; machinery, equipment, tools and other spare parts up 58.3%; wood and wood products by 11.1%; means of transport and spare parts by 25.1%; iron and steel of all kinds by 43%; rubber products increased by 31.9% …
Generally, in 10 months of 2020, the export turnover of manufacturing products group grew quite high compared to the same period in 2019 and contributed mainly to the overall growth rate with an estimated turnover of 194.37. USD billion, an increase by 5.3% over the same period last year.
In the new context, when Covid-19 is strictly controlled and the Free Trade Agreements becomes effective, especially the EVFTA; besides, administrative procedures are reformed to create an open legal corridor for business environment, which will be a great driving force in development of activities of business community, including manufacturing enterprises. In addition, manufacturing enterprises need to actively change production methods, improve growth models; diversify the supply chain to produce and sell products; change transaction methods in order to interact better and more effectively with consumer needs. It is the changes to adapt to the “new normal state” to promote the development of industrial production, greatly contributing to economy’s recovery and regaining high growth rate in coming years.