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Economy

Jan.-July industrial production grows 2.6%, lowest in years due to COVID-19

Khanh Minh Wednesday | 07/29/2020 10:37

Photo: tapchitaichinh.vn

The index of industrial production witnessed a modest increase of 2.6 percent in the first seven months of 2020, the lowest level in several years, according to the General Statistics Office.

The country’s industrial production has been facing difficulty due to the the Covid-19 pandemic which is taking tolls on several world’s economies, major investors and trade partners of Vietnam.

Industrial production continues to face difficulties and instability due to complicated development of the Covid-19 pandemic that leads to the disruption of the supply chain of raw materials. In the same period of 2019, the index was 9.4%, GSO said.  

In July alone, the index slumped sharply to 3.6 percent over the previous month and by 1.1 percent over the same period last year.

Last month, the processing and manufacturing sector which contributes a large part of domestic industrial production reported the strongest IIP reduction at 4.2 percent in the seven-month period. The rate was 10.7 percent in the same period of 2019.

The COVID-19 pandemic has caused a shortage of imported raw materials for production, seriously affecting industrial production. The mining sector reported IIP reduction of 7.8 percent while the IIP of oil and gas exploitation fell by 11.3% percent.

Among sectors reporting a decline in IIP growth in Jan-July period, the automobile sector fell 15.4 percent, beverage production down 6.3 percent, wood processing and wood products down 3.4 percent.

As of July 1, the number of labourers in industrial enterprises grew 1.3 percent month on month and fell 1.8 percent on-year as firms cut jobs to limit negative impacts from the pandemic, GSO said.

► Vietnam’s consumer prices up 4.07% in Jan-July

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