Key industries must access new resources.

DNHN - In contrast to the recent downward trend, the industrial production situation in Vietnam in July 2023 has shown some positive signals.

The Purchasing Managers' Index (PMI) of Vietnam's manufacturing industry rose to 48.7 points in July, up from 46.2 points in June, 45.3 points in May, and 46.7 points in April, according to data from the Ministry of Industry and Trade. Despite the increase, it should be noted that the PMI remained below the 50-point threshold, indicating weak manufacturing activity.

In 2022, the Index of Total Industrial Production (IIP) also increased, rising by 3.9% month-over-month and 3.9% annually. Comparing the first seven months of 2023 to the same period in 2022, several public sector Key businesses saw a substantial increase. Production of diameter increased by 32.3%, NPK fertilizer by 15.9%, petrol by 13.2%, television by 11.4%, and synthetic textile fabrics by 8.8%.

After months of recession, the textile and apparel industry entered a prosperous period. According to the Vietnam Textile and Apparel Association, textile production and export have significantly increased over the past two months. In June, textile and garment exports reached 3 billion USD, a decrease of 17.6% compared to the same period in the previous year. However, in July, exports increased to 4 billion USD, a decrease of 14.7%.

In July 2023, Hoa Phat Group also posted positive results. Compared to June, crude steel production increased by 22%, and sales of hot-rolled coils reached their highest level since the beginning of the year. This increase in supply was caused by a recovery in export market demand.

Despite this, the effects of the global economic slowdown continue to create numerous obstacles. The IIP of the entire industry is projected to decrease by 0.7% compared to the same period last year, compared to an increase of 8.6%. Automobiles (-19.6%), mobile phones (-19.3%), motorcycles, and cement (-5.8%) were among the key industrial products that experienced a decrease compared to the same period last year.

In this context, maintaining and expanding production requires compliance with import market standards and regulations. Truong Van Cam, vice president and general secretary of the Vietnam Textile and Apparel Association, emphasized the significance of adhering to green standards to boost Vietnam's brand image and sustainable development. In the meantime, businesses must restructure their human resources and implement digital management to swiftly meet customer demands.

Businesses must seek opportunities to join international production chains, flexible factory models, and personalized products to overcome obstacles. During this period, product diversification, finding new markets, and connecting to international supply chains are also viewed as crucial solutions.

Vu Ba Phu, director of the Trade Promotion Department (Ministry of Industry and Trade), advised businesses to exploit Vietnamese markets in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). A new free trade agreement was signed. In addition, companies can search for "niche" markets like the Middle East, Africa, and Latin America. "Vietnamese trade agencies overseas will actively provide businesses with market information and solutions. Additionally, industry associations must provide comprehensive product group information. Mr. Vu Ba Phu stated that businesses can produce and must promote trade to find output for goods, particularly for key commodity groups.

Phan Thi Thang, Deputy Minister of Industry and Trade, stated that the ministry will continue to eliminate obstacles for businesses to promote production development by closely monitoring the production situation of industries, fields, and several significant localities. industrial music. Continually connect domestic businesses to the supply chains of businesses with foreign investment. The planning for exploration, exploitation, processing, and use of minerals that was just approved by the Government is the basis for the Ministry of Industry and Trade to issue documents to put these valuable minerals into exploitation and use, thereby providing a new impetus for industrial development and aiding Vietnam in achieving raw materials independence.

Although there are still many difficulties and challenges, the positive signal in the situation of industrial production in Vietnam in July 2023 demonstrates the enterprises' ability to overcome obstacles and adapt. In the coming years, the determination to eliminate obstacles, seek out new opportunities and enhance product quality will be crucial to the continued growth of Vietnam's industrial sector.

Thanh Ha