AUTO OUTPUT JUMPS NEARLY 60%, BOOSTS INDUSTRIAL GROWTH

A worker assembles a car at an auto factory in Vietnam - PHOTO: ARCHIVES

HCMC – The index of industrial production (IIP) rose 8.5% in the first eight months of this year, driven by strong growth in automobile manufacturing, according to the National Statistics Office (NSO).

Automobile output increased 59.6% from a year earlier, the fastest growth among key industrial products. The sector became the main contributor to overall industrial expansion, the NSO said.

In August, the IIP picked up 2.2% from July and 8.9% from a year earlier. Manufacturing grew nearly 10%, while mining and power generation also posted gains.

The Government earlier this year issued Decree 21, extending a 0% preferential import tariff until 2027 on components and materials not produced domestically for the automotive supporting industry. Companies already participating in the program can continue to benefit without re-registration.

Other products also recorded growth, including televisions, up more than 20%, cement and leather footwear, each rising about 14%, and rolled steel, up nearly 12%. Natural gas, synthetic fibers and crude oil extraction declined.

All 34 provinces and cities surveyed reported higher industrial output from a year earlier. Employment in industrial enterprises continued to rise, particularly in foreign-invested firms and the manufacturing sector.

Source: The Saigon Times