Resolution 11/NQ-CP: Policies positively impact production and business

The government's economic recovery and development policy, as outlined in Resolution No. 11/NQ-CP of January 30, 2022, has had an optimistic impact on the result and operations of businesses.

In May 2022, the index of industrial production (IIP) in Ho Chi Minh City climbed by 6.5 per cent over the previous month and by 9 per cent over the same time.

Growth surpasses price storm

In the first five months of 2022, the IIP index in Ho Chi Minh City climbed by 2.6% compared to the same time the previous year. 20/30 grade-II industries will attain the industrial production index

Some industries increased significantly, such as processing and other manufacturing industries, which increased by 44.8%; production of rubber and plastic products increased by 33.1%; production of print, copy records of all types increased by 18%; production of drugs, pharmaceutical chemicals, and herbal ingredients increased by 14.2%; apparel production increased by 12%...

Also, in the first five months of 2022 in Ho Chi Minh City, the industrial production index climbed by 5.6% for four major industries. The chemical and pharmaceutical sectors grew by 19.8 per cent, the food and beverage industry by 4.6 per cent, the mechanical industry by 0.2 per cent, and the electronics manufacturing industry by 8.4 per cent, respectively.

During the same period, the index of industrial production grew by 5.1% compared to the same time in the previous year, mostly due to the three traditional industries.

In keeping with the upward trend of manufacturing industries, the consumption index of the total processing and manufacturing industry in Ho Chi Minh City in May 2022 climbed by 4.8% over the previous month and by 6.4% over the same time.

In the first five months of 2022, the consumption index of the entire industry decreased by 0.1 per cent compared to the same period in the previous year. However, many industries experienced a significant increase in consumption, including printing and copying all types of records; manufacturing products from rubber and plastic; wood processing and production of products from wood, bamboo, and cork (except for beds, cabinets, tables, chairs)...

According to a spokesman of the Ho Chi Minh City Department of Industry and Commerce, trade and service operations in the region maintained the momentum of the previous months' recovery and achieved good growth. In May 2022, there will be a holiday for International Labor Day and the Southeast Asian (SEA) Games will be hosted in Vietnam, so many business units in the area will boost promotional activities to accommodate the demand for entertainment, and consumer amusement, and retail stimulation.

In addition, the domestic gasoline price jumped by about 30,000 VND per litre, which impacted the cost of input materials, as well as the revenue of numerous groups of goods and services in the region. However, the manufacturing and trading business community have been persistently working to recover, develop, and expand despite the storm of rising input material costs.

Vietnam National Textile and Garment Group (VINATEX) and KOVA Paint Group typically introduced VINATEX-KOVA flame retardant fabrics to the market in Ho Chi Minh City in May 2022. This product combines the textile finishing dyeing technology of VINATEX and the Nanotechnology of KOVA, as well as an original high-tech process owned by a Vietnamese company.

Chairman of KOVA Paint Group, Dr Nguyen Thi Hoe stated that VINATEX-KOVA Fire Resistant Fabric is willing to collaborate with applied research departments to manufacture fabrics that suit the needs of technique, art, and convenience to beneficial in use. The product can be used to sew workwear in the oil and gas, petroleum, electricity, mining, aviation, and chemical industries; Suitable for everyday products such as curtains, sofa covers, ironing tables, kitchen aprons, closets, canvas coverings for 2-wheelers, 4-wheelers, and kiosk covers...

Supply chain investment

In May 2022, the total retail sales of consumer goods and services in Ho Chi Minh City totalled VND 96,281 billion, an increase of 0.8% over the previous month and 10.4% over the same period the previous year. During the first five months of 2022, total retail sales of consumer products and services reached VND 456,153 billion, an increase of 0.6% compared to the same time in the previous year.

Almost all retail sales in all product categories increased compared to the previous month, including food and food products; household appliances, tools, and equipment; gasoline;... Additionally, revenue from the hospitality and food service industries climbed significantly compared to previous months.

According to the business community in Ho Chi Minh City, one of the factors contributing to the development of this group of products is the progressive increase in the number of international tourists to Vietnam since the implementation of the open-door policy economy beginning in mid-March 2022. In particular, as a result of the SEA Games, the number of domestic and international flights, as well as the number of meals, increased. Furthermore, wedding restaurant revenue climbed once more.

In contrast, Vietnam's e-commerce industry ranks second in Southeast Asia and is projected to reach over 39 billion USD by 2025. At the same time, investment is rising in tandem with the rising tide of internet purchasing. The implementation of logistics technology is viewed as a solution to help businesses fulfil the rising demand for transportation and provide consumers with more ease in the future.

In Ho Chi Minh City, the worldwide express delivery brand J&T Express has inaugurated a transit centre in the Cu Chi area, establishing a new building and development benchmark for the past four years in Vietnam. The new transit centre of J&T Express, with an area of roughly 60,000 square meters, can handle up to 2 million large and small items during the day.

Smart Logistics standards dictate that the process of receiving items, entering information, and delivering goods be done rapidly and automatically by applying technology to the majority of its steps. Simultaneously, J&T Express pioneered the introduction of a variety of new services, such as standard delivery services, to fulfil the varying needs of its clients. J&T Express; courier J&T Fast; delivery J&T Freshest shipping International delivery by J&T Fresh J&T Corporation...

MMrPhan Binh, Brand Director of J&T Express, stated that J&T Express aspires to become a prestigious and sustainable express delivery brand, supporting online businesses in particular and serving customers in Vietnam in general. This statement was made about the opening of a new large-scale transit centre in the Cu Chi district. The recent growth of the e-commerce sector and the rising demand of Vietnamese customers have prompted a race for the internal resources of manufacturing and business businesses, as well as quick delivery.

In the first quarter of 2022, Vietnam will have more than 8 million new online consumers, with more than 55 centimetres centring in rural areas. The number of e-commerce users tends to rise, with 97 per cent of consumers still using the service and 99 per cent planning to continue doing so in the future.

According to some experts, the issue of enhancing competitiveness, planning production and company development strategies, particularly for e-commerce, necessitates not just price rivalry, but also a war to improve system construction and long-term business thinking. Specifically, enterprises must not only address the needs of the consumer experience in terms of prices and rules but also fulfil optimal criteria for utilities and delivery.

My Phuong