Report of Department of Industrial Economy – Ministry of Planning and Investment in July 24th 2012.
1 / General situation:
The industrial production index in July 2012 rose by 3.2% compared to June 2012 and up 6.1% compared to the same period in 2011; Compared to the same period in July 2011: the mining industry increased by 9,4%; processing, manufacturing industry by 4.2%; production and distribution of electricity, natural gas by 14.4%; water supply, garbage and wasted water management and treatment by 10.5%.
In the first 7 months of 2012, the IIP increased by 4.8% over the same period. In which: mining industry by 3.2% (mainly due to crude oil with an increase of 11.9%, while coal mining and hard coal collection decreased by 3.5%; natural gas extraction by 3.2%; extraction of stone, sand, gravel, clay and kaolin by 22.9%, caused by the enterprises to reduce production in moderation to decline inventory which led to the decrease of demand for raw materials, on the other hand, the legal documents guiding the auction of mining right started to take effect so that mining production have been affected partly); processing, manufaturng industry rose 4,3%; production and distribution of electricity, gas up 13.7%; water supply, management and treatment of rubbish, waste water up 9.8% over the same period.
Some industrial sectors had an increase over the same period in 2011 such as: crude oil extraction increased by 11.9%; processing and preservation of aquatic products and their processed products by 9.8%; milk processing and dairy products by 19.9%; production of cattle-feed, chicken-feed and aquatic-feed by 14.4%; beer production by 9.7%; production, transmission and distribution of electricity by 12,7%, production of drugs, pharmaceuticals and medicinal materials by 17.9%, manufacture of fertilizers and nitrogen compounds by 10.4%; production of electronic components by 31.6%; ...
Some industries had a decrease in production compared with the same period such as: coal mining and hard coal collection fell by 3.5%; exploitation of natural gas by 3.2%; mining of stone, sand, gravel, clay and kaolin by 22.9%; cement production by 8%; production of concrete and products from cement and plaster by 11.9%; engined vehicle production fell 11, 1%; ...
2. The production of a number of major industrial products:
- Some products had an increase in production over the same period such as: crude oil was 9.4 million tonnes, up 11.9%; natural gas in gas form reached 5.5 billion m3, up 4.6%; processed seafood and aquatic products reached 1 million tons, up 12.6%; milk powder reached 43.5 thousand tons, up 22.9%; cotton fabrics up 8.1%; shoes, sandals, leatherette boots for adult reached 34.2 million pairs, up 19.7%; chemical fertilizer reached 1.3 million tons, up 5.3%; washing machines by 34.7%; production electricity reached 65.1 billion kWh, up 15.4 %; commercial water up 9.4%; beer of all kinds by 5.3%; NPK fertilizer obtained 1.6 million tons, up 0.6%.
- Some products had a decrease in production over the same period, such as: coal reached 25.9 million tons, down 3.5% over the same period; liquefied petroleum gas (LPG) reached 335 thousand tons, down 1.5%; chemical paint fell by 9.7%; cement obtained 32 million tons, by 6.1%; round steel of all kinds obtained 1.8 million tons, by 12.6%; cars by 12.7%; air conditioners by 30, 6%; motorcycles by 5.1%; tires of cars, tractors by 6.8%.
3. Consumption and inventory situation of some industries:
a. Consumption situation of some industries
The consumption index of processing, manufacturing industry in June rose 2.3% compared with May 2012; in which:
- Some industries had an increase in consumption compared to May 2012, as follows: Production of ready-to-wear clothes (excluding costumes) increased by 33.4%; clothing (excluding costumes from fur and leather) by 23.3%; production of miscellaneous chemical products by 6.6%; manufacture of drugs, pharmaceutical and medicinal materials by 4.9%; production of civil electronics products by 28.6%; engined vehicle production by 100%.
- Some industries had reduction in consumption compared to May 2012, as follows: fiber production fell by 10.6%; footwear production by 7.3%; cement production by 8.2%; production of iron, steel, cast iron by 9.1%; production of fertilizers and nitrogen compounds by 32.9%; production of construction materials from clay by 11.1%; production of spare parts and auxiliary products for engined vehicles and engines by 6.9%; ...
b. Inventory situation of industries
- As of June 30th 2012, the inventory index of the processing, manufaturing industry rose 6% compared to May 2012; inluding: manufacture of fertilizers and nitrogen compounds rose by 27%; processing and preservation of aquatic products and their processed products by 8.3%; processing of milk and dairy products by 9.9%; production of iron, steel, cast iron by 15.9%; production of metal parts by 8%; production of electronic components by 80.4%; production of media equipments by 69.3%; ...
4. Import and export in the first 7 months of 2012:
a. Export
Estimated export in July 2012 reached US$9.6 billion, down 2.9% against the last month; in which, export of foreign-invested enterprises (excluding crude oil) was estimated at US$5.25 billion.
In the first 7 months of 2012, total export turnover was estimated at over US$ 62.9 billion, increased 19% over the same period last year; in which, export of foreign-invested enterprises (excluding oil crude) was estimated to reach US$ 34.3 billion, increased 41.1% compared to the same period last year and accounted for 54.5% of total exports.
Export of some main commodities in the first 7 months of 2012 compared to the same period last year: crude oil was estimated at nearly 5.4 million tons, up 12.1% in volume and 10.9% in turnover; coal was at an estimation of 8.2 million tons, down 18.9% in volume and 25.3% in turnover; textiles reached nearly US$ 8.2 billion, up 8.9%; footwear reached US$4.2 billion, up 16%; timber and wood products obtained over US$2.55 billion, up 21.2%; telephones and components were nearly US$ 6.2 billion, increased 151.6%; computers, electronic products and components reached US$ 3.98 billion, up 81.3%; aquatic products up 6.6%; rubber rose 32.2% in volume; plastic products rose 21%; ...
b. Import
Import turnover in July 2012 was estimated at US$ 9.5 billion, reduced 0.3% over the last month, in which, the import of foreign-invested enterprises was estimated at US$ 5 billion.
In the first 7 months of 2012, the total import turnover was estimated reaching US$63 billion, up 7.3% compared with the same period last year; in which, import turnover of foreign invested enterprises reached US$ 33 billion, increased 25.3%.
Import volume and turnover of some main commodities in the first 7 months of 2012 over the same period last year, as follows: gasoline reached 5.6 million tons, down 14.1% in volume and 8.7% in turnover; iron and steel of all kinds reached 4.3 million tons, up 1.9% in volume and down 3.6% in turnover; fertilizer of all kinds reached 1.8 million tons, down 18.8% in volume and 10.1% in turnover; paper of all kinds reached 680 thousand tons, up 12.8% in volume and 7.7% in turnover; plastic materials reached 1.4 thousand tons, increased 2.8% in volume and decreased 1.7% in turnover; machinery, equipments, spare parts gained over US$ 9 billion, up 5%; computers and components reached US$ 6.7 billion, up 92.3%; textile materials obtained US$ 1.7 billion, up 1.6%; ...
5. Solutions and recommendations:
- The first recommended solution is to continue to monitor closely the progress of investment projects, the disbursement of projects. Projects with capital allocated in 2012 (including the State budget and Government bonds) should quickly follow the progress to ensure investment needs of the urgent projects which needs to be completed in 2012 and to prepare for the next years.
- The second is to implement scheme of restructuring state-owned enterprises, strengthening the management to improve the efficiency of state-owned enterprises.
- Enterprises need to exploit production capacity and market demand in a maximum level in order to meet the necessities of the economy such as power, coal, petroleum, fertilizer, construction steel, etc.; some consumer products such as garments, footwear, milk, vegetable oil, and export products such as crude oil, garments, footwear, mechanical products, electrical wire and cable ...
- The next is to continue to promote technological innovation, strengthen management, research on the use of raw and intermediate materials, machinery and equipments produced in the country, spontaneously perform drasticly national target programs on economical and efficient usage of energy to reduce costs, lower production costs in order to increase the efficiency of investment, production and business.
- Another recommendation is to continue to reduce the interest rate to encourage investment, production and business of enterprises to meet demand in the domestic market and export. /.
Ministry of Planning and Investment