Industrial production of southern economic hub enjoys recovery in May

The Index of Industrial Production (IIP) of Ho Chi Minh City was boosted by a 7.9% surge in May against April, despite representing an annual decline of 15.5%, therefore signaling that local industrial production is beginning to pick up, according to the city’s Department of Industry and Trade

industrial production of southern economic hub enjoys recovery in may

Indeed, the southern metropolis’ Department of Industry and Trade stated that due to the novel coronavirus (COVID-19) yet to be brought under control in many locations that are the country’s major trading partners, the IIP endured a fall in comparison with the figures recorded in May last year.

The consumption indicator in terms of processing and manufacturing suffered a drop of 5% from the previous year, whilst metal products, wooden and bamboo items, with the exception of furniture, machinery, and electrical devices endured an on-year decline in sales.

Moreover, between January and May, the inventory index recorded a sharp rise of 84.4% in electrical device production, whilst chemical and related product manufacturing rose by 67.2%, metal production went up by 43.3%, and motorised vehicle manufacturing increased by 40.5%.

Simultaneously, local businesses made over US$3.38 billion from exports during May, an increase of 10% from the previous month. Meanwhile, overseas shipments enjoyed an annual price hike of 6.3% on-year to upwards of US$16.96 billion during the opening five months of the year.

Nguyen Phuong Dong, Deputy Director of Ho Chi Minh City’s Department of Industry and Trade, said China has retained its position as the city’s largest export market, with US$3.97 billion worth of goods shipped there during the reviewed period. This figure represents a rise of 38.5% on-year and accounts for 25.7% of the city’s total exports, followed by the United States and Japan.

Source: VOV

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