Hanoi: The Index of Industrial Production in January 2024 Increases by 19.3% Year-on-Year

DNHN - Several industries in Hanoi witnessed remarkable growth in January, with the IIP increasing. These include the production of electrical equipment (89.8%), non-metallic mineral products (46.6%), and other manufacturing and processing industries (49%).

According to recent statistics from the Hanoi Statistics Office, the index of industrial production (IIP) in January 2024 experienced notable fluctuations. The IIP decreased by 3.7% compared to the previous month but surged by 19.3% year-on-year.

Specifically, the manufacturing and processing industry saw a slight decline of 3.5% but maintained a growth rate of 20.6%. Electricity production and distribution also faced a decrease of 6.4% and an increase of 8.4%, respectively. Meanwhile, the mining industry experienced a 0.7% decrease and a 7.1% increase. These figures reflect the diverse and dynamic nature of the city’s industrial production system.

Some industries that stood out in January with high IIP growth rates include the production of electrical equipment (up by 89.8%), non-metallic mineral products (up by 46.6%), and other manufacturing and processing industries (up by 49%). The production of chemicals and chemical products, paper production, and printing and copying services also recorded significant growth, at 36.8%, 35.7%, and 30.4%, respectively.

However, the labour situation in Hanoi’s industrial enterprises appears to be less encouraging. By the end of January, the number of employed workers decreased slightly compared to the previous month and dropped by 2.7% year-on-year. In contrast, the number of workers in state-owned enterprises increased, while those in the non-state sector increased slightly and those in foreign-invested enterprises decreased by 0.1% and 4.6%, respectively.

According to Ms Tran Thi Phuong Lan, Acting Director of the Hanoi Department of Industry and Trade, the export market is facing difficulties due to the decline in global trade and the slowdown in the domestic market. Input costs have also risen, posing challenges to industrial production activities in Hanoi since the beginning of 2023.

However, Ms Lan emphasised that with the recovery of global consumer demand and support from the government, the domestic industry, especially in the capital city, is undergoing a recovery and receiving many positive signals.

In the coming period, the Hanoi People’s Committee has made several commitments and proposed solutions to promote industrial production growth. Plan No. 302/KH-UBND on implementing the Project for Developing Key Industrial Products of the City in 2024 has been issued, aiming to ensure that 100% of enterprises producing key industrial products benefit from the city’s support policies.

Hanoi is also focusing on effectively implementing policies related to interest rates and credit to support businesses and individuals. The Tet holiday is expected to provide an opportunity for businesses to increase production, contributing positively to the recovery of the industry’s growth momentum. The City People’s Committee has assigned the Department of Industry and Trade and related units to synchronously implement solutions to promote industrial production growth in the coming period.

PV