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Industrial production expands over 6% year on year in Q1: MoIT

Sunday, 31/03/2024 | 00:42:29 [GMT +7] A  A

Industrial production continued to thrive in the first quarter with the entire sector’s added value rising 6.18% year on year, the Ministry of Industry and Trade (MoIT) reported.

Workers produce electronic components at a factory of the Khvatec Thai Nguyen Co. Ltd, invested by the Republic of Korea, in the Yen Binh Industrial Park in Pho Yen city, Thai Nguyen province. (Photo: VNA)

The increase contributed 2.02 percentage points to the growth of the economy’s added value, the MoIT told its regular press conference in Hanoi on March 29.

In particular, processing and manufacturing served as a major driver of economic growth, climbing up 6.98% and contributing 1.73 percentage points. Electricity production and distribution rose 11.97% and contributed 0.45 percentage point. Water supply along with waste and wastewater management and treatment grew 4.99% and contributed 0.03 percentage point.

However, the mining industry contracted 5.84%, with the coal exploitation volume down 0.3% and crude oil down 3.2%, reducing the general growth by 0.2% percentage point, statistics show.

The index of industrial production (IIP) went up in 54 of the 63 provinces and centrally-run cities during the period. Some localities recorded a double- or three-digit IIP growth rate thanks to surges in processing - manufacturing or electricity production and distribution, the MoIT noted.

Meanwhile, total revenue of goods retail and consumer services in Q1 was estimated at nearly 1.54 quadrillion VND (61.5 billion USD), up 8.2% from a year earlier. The sum includes 1.19 quadrillion VND of goods retail revenue, accounting for 77.4% of the total and increasing by 7% (by 4.5% if price hikes are excluded).

MoIT Deputy Minister Nguyen Sinh Nhat Tan attributed those results to the Government’s support measures and the Prime Minister’s strong directions for promoting public investment disbursement and key industrial projects, together with FDI attraction and disbursement effects that have also helped improve domestic production capacity.

He also mentioned the global market recovery as seen in the rebound of export orders and efforts to diversify markets, the upgrade of Vietnam’s relations with large trading partners that has enhanced investors’ trust, and domestic businesses’ better capacity.

The official viewed the signs of economic recovery during the first three months as a driver of domestic consumption.

Source: Nhan Dan