HCMC’s industrial production increases 7.49 percent in May

SGGP
The Department of Industry and Trade of Ho Chi Minh City on June 1 announced that the city’s index of industrial production (IIP) in May was estimated to increase by 7.94 percent compared to the previous month.
However, in the first five months of this year, the IIP was estimated to decline by 7.16 percent over the same period last year.

According to the representative of the city’s Department of Industry and Trade, the best growths were recorded in some industries, including food and foodstuff processing, pharmaceutical chemistry, electricity, and electronics. Particularly, the food and foodstuff processing industry was estimated to increase by 0.89 percent. This was the highlight of the industrial industry in the first five months of this year when food processing enterprises started to increase their production to serve the market that tended to recover. Enterprises in the food and foodstuff industry also achieved good growth in revenues thanks to increasing demand and purchasing power of the domestic market during the pandemic. 

Many city-based enterprises, such as rice distributor Vinh Phat Company, processed food producer Vissan, and instant food producer Vifon, have adjusted their business strategies, concentrating their resources for the domestic market instead of for export like before. Currently, accelerating production and increasing revenue after the Covid-19 pandemic also contributes greatly to limiting the downward momentum of the industrial industry caused by the impacts of the pandemic in general.

The pharmaceutical field, in the first five months, was also estimated to increase by 8.37 percent. In particular, the group of medicines, pharmaceutical chemicals, pharmaceutical materials, and the group of chemical products have posted extremely high increases of 19.37 percent, and 23.16 percent respectively. The reason was the increasing demand for cleaning products such as soap, detergent, and hand sanitizer to prevent the Covid-19 pandemic. Although maintaining the growth momentum of 11.83 percent, the group of electricity and electronics saw lower growth than the growth of 29.14 percent in the same period last year. The electronics industry had the highest growth rate among key industries mainly due to the high number of production orders.

By Ai Van – Translated by Thanh Nha

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