In order to restore and promote the industry of Ho Chi Minh City to develop worthy, in the coming time, Ho Chi Minh City will have great support for this field…
According to the Ho Chi Minh City Bureau of Statistics, by the end of the first quarter of 2023, GRDP (gross domestic product) of Ho Chi Minh City reached VND 246,931 billion (at constant prices), an increase of only 0.7% over the same period last year. , lower than the national average of 3.3% and ranked 56th out of 63 localities.
HEAVY INDUSTRIAL GROWTH DOWN
In HCMC’s GRDP growth rate of 0.7%, the sector contributing the highest to growth is still trade in services with 1.33 percentage points (+2.07% growth), followed by product tax products contributed 0.15 percentage points (+1.14% y/y), agriculture, forestry and fishery contributed 0.01 percentage points (+2.06% y/y). However, industry and construction decreased by 0.79 percentage points (growth decreased by 3.6%).
Regarding the economic structure of Ho Chi Minh City over the past many years, trade in services still accounts for the largest proportion with 66.2%, followed by industry and construction with the proportion of 20.1%, product tax minus tax. Product subsidies accounted for 13.1%, agriculture, forestry and fishery only accounted for 0.6%.
The structure of GRDP in the first quarter of 2023 of Ho Chi Minh City. Source: Ho Chi Minh City Statistical Office.
In the first 3 months of 2023, HCMC’s industrial sector slowed down as the index of industrial production (IIP) decreased by 0.9% over the same period. In which, the processing and manufacturing industry decreased by 1.1% although electricity production and distribution increased by 1.4% and water supply and waste treatment increased by 5.3%.
In 04 key industrial sectors of the city, IIP still increased by 8.2% over the same period, including light industries (chemical and pharmaceutical industries increased by 22.9%; food and beverage increased by 18.5%). %) but the heavy industry (mechanical engineering and manufacturing of electronic goods) decreased by 6.5% and 14.4% respectively.
For 03 traditional industrial sectors of light industry, IIP also decreased by 18.1%. Specifically: the textile industry decreased by 2.8%; leather and related products industry decreased by 19.4%; apparel production decreased by 21.9%.
In terms of consumption, in the first quarter of 2023, the group of processing and manufacturing industries decreased by 6.4% over the same period. A sharp decrease of 38-39%, mostly in heavy industry, including: other manufacturing and processing industrial products; prefabricated metal products; motor vehicles; a decrease of 30-32% in the production of metals and other non-metallic mineral products.
Index of Industrial Production (IIP) Ho Chi Minh City in the first quarter of 2023 – Source: Ho Chi Minh City Statistical Office.
Some industries saw a sharp increase in consumption, such as: production of rubber and plastic products increased by 62.3%; beverage production increased by 50.3%; electrical equipment production increased by 30%; print, copy record types increased by 15%.
Inventories also decreased similarly in the production of rubber and plastic products down 32.6%; production of electrical equipment decreased by 32.7%; production of leather and related products decreased by 56.8%; metal production fell 40.7%.
The decrease in consumption caused inventories of the processing and manufacturing industry to increase by 4% over the same period, as of March 2023, both in the heavy and light industries. In which, inventories increased by 75.4% in the field of manufacturing beds, cabinets, tables and chairs; inventories also increased by 34-40% in the apparel manufacturing sector; cigarette; chemistry; machinery and equipment not elsewhere classified.
It can be seen that the decline in growth in the industrial sector of HCMC is concentrated in the heavy industry. Light industry (consumer goods manufacturing) and services are still growing thanks to domestic demand. Therefore, the importance of heavy industry is not small for economic growth.
WILL HAVE HUGE SUPPORT
In order to restore and promote the city’s industry to develop worthy, in the coming time, Ho Chi Minh City will have support on a larger scale, “thick” for this field.
This is one of the contents that Mr. Bui Ta Hoang Vu, Director, Ho Chi Minh City Department of Industry and Trade, informed at the quarterly press conference in the first quarter of 2023 in the city on the afternoon of April 3, 2023.
Mr. Bui Ta Hoang Vu, Director, Ho Chi Minh City Department of Industry and Trade: “The transition to new technology and modern machinery for production with support from the State, enterprises themselves must also make efforts” – Photo: PV.
According to Mr. Vu, commodity consumption and retail have “supported” HCMC’s growth in the first three months of 2023 at positive numbers, but trade and services still face many difficulties and challenges. in terms of transportation, warehousing, labor costs… people’s income has not been improved much. Regarding the production of the industry, businesses are still facing difficulties when there is a lack of orders and the pressure of input costs increases.
Explanation of the decrease in growth in the light industry group, such as: wood products, fine arts; clothing, textiles, as well as electronics (heavy industry), Mr. Vu attributed the impact of the world market in reducing export orders of these enterprises.
In addition, industrial production accounts for 23% of HCMC’s GRDP, and in the context that the real estate industry is more difficult in the first months of 2023, therefore, the construction industry’s large decline has affected the real estate industry. industry in general.
“Ho Chi Minh City’s IIP reduction rate has slowed down. Specifically, if January IIP decreased by 15%, February decreased by 2.5%, March decreased by 0.5%, and the total in the first quarter of 2023, IIP decreased by 0.9% compared to the whole country, this reduction shows that signs will recover. Particularly, the localities where the industrial production index has increased rapidly are the provinces with a large number of foreign-invested enterprises … “, Mr. Vu emphasized.
Regarding development solutions for the industry, Ho Chi Minh City will support manufacturing enterprises in sourcing raw materials through cooperation between Ho Chi Minh City and provinces, especially connecting banks with businesses.
In the context of general difficulties, the Bangladeshi textile industry is still developing due to the country’s early transition to green production, while Vietnam’s textile and garment industry is facing difficulties. Therefore, it is necessary to immediately shake hands and link to promote green production and export.
First, in order to support production and stimulate consumer demand, the Department will launch a focused promotion program to turn Ho Chi Minh City into a shopping center that attracts tourists and residents. changing the structure of people’s basket of goods is not only essential goods but also goods of higher value.
In order to maintain the bright spot of retail goods, create competition for domestic goods, the city will also create development from the root of increasing product quality and value. With the development of focus on light industry, the city also does not forget the important role of heavy industry and source technology, thereby creating a support circle for sustainable production and consumption.