Foreign invested enterprise production grows

Foreign invested enterprises (FIEs) in the two major cities have seen a significant growth in industrial production in the first nine months of the year, despite both cities facing sluggish industrial production.
According to Hanoi’s Department of Industry and Trade, during the first nine months, FIE industrial production values have attained a year-on-year growth of 16.4 per cent in comparison with the average figure for the nation of 12.7 per cent.

Although facing many difficulties, several FIEs still grew significantly, such as YAMAHA Motor Vietnam, Machino Auto-Part Co Ltd, Canon Vietnam, GM Vietnam Motors and INAX Vietnam, the department said.

Meanwhile, Hanoi experiences sluggish industrial production growth of 3.9 per cent this month in comparison with the previous month.

In the first nine months of the year, the figure is estimated to have increased 12.7 per cent compared with the same period last year. Of this, State-owned enterprises grew 7.5 per cent, the private sector was up 11.2 per cent, and foreign direct invested enterprises rose 16.4 per cent.

Trinh Thi Ngan, head of the Industrial Management Division under the department, said inflation was blamed for a reduction in domestic consumption which, in turn, impacted adversely on domestic investment motivation.

She said many producers were facing difficulties due to enormous stockpiles, costly input materials and high interest rates, while many businesses were unable to access bank loans.

In September, Hanoi’s Index of Industry Products (IIP) rises by 3.6 per cent compared with the same period last year.

In the first nine months of 2011, the index is estimated to have climbed 7.98 per cent.

Of this, mining rises 23.02 per cent, the processing industry is up 7.93 per cent; water, electricity, gas production and distribution increase 8.17 per cent.

Hanoi’s industrial production is predicted to surge 12.5 per cent for 2011.

FIE industrial production in HCM City rises 14 per cent in the first nine months of 2011, compared to the city’s total industrial production growth of 12.3 per cent.

However, the city’s State-owned enterprise figure grows only 3.9 per cent.

In September alone, the country’s largest city’s industrial production is estimated to reach 66.523 trillion dong (US$3.2 billion), an increase of 2.1 per cent compared with August.

Of 27 industries, about 20 industries see growth, including leather shoes, textile/garments, construction materials, electrical machinery and appliances and furniture.

The city’s industrial production is forecast to increase 12.2 per cent for the entire year

Experts said that to fulfil the 2011 production plan, set at the beginning of the year, manufacturers of both cities ought to cut costs by minimising expenses.

Source: Vietnam News

Tags: invest in Vietnam, Vietnam FDI, Vietnam FDI 2011, Vietnam investment