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BUSINESS REPORT
BUSINESS REPORT

Localities’ percentage increase /
decrease in Index of Industrial
Returning to growth Production, 2M 2024
Industrial production is well placed to see better days Top 10 localities with the highest increase
if certain issues can be resolved. 63.2% Tra Vinh
28.7% Bac Giang
By HUYEN VY
26.9% Phu Tho
24.5% Thanh Hoa
21.5% Ha Nam
ietnam’s Index of Industrial Pro- Prime Minister Pham Minh Chinh 20.8% Quang Ngai
duction (IIP) rose 5.7 per cent year- issued Directive No. 07/CT-TTg on
V on-year in the first two months of February 22, 2024, on reforming 19.8% Khanh Hoa
2024, figures from the General Statistics governance, improving production 19.3% Binh Phuoc
Office (GSO) reveal, with the result expected and business efficiency, and strongly 18.2% Kien Giang
to create momentum for industrial pro- promoting development investment 16.7% Tay Ninh
duction to grow even further this year. by State-owned groups, corporations,
Some analysts view the result as a major and enterprises. State-owned Seven localities with highest decrease
enterprises will continue to improve
positive amid the ongoing headwinds buf- their competitiveness in industrial
feting global and domestic economies. It production, particularly in support Son La 25.3%
also demonstrates the efforts of relevant industries. Bac Ninh 15.3%
ministries, agencies, and associations in
actively strengthening business links and Hoa Binh 7.5%
boosting consumption. Businesses are Ca Mau 6.6%
restructuring and cutting production costs Quang Tri 3.1%
and therefore product prices, helping Ha Giang 2.0%
improve business efficiency and their adap-
tation to the new circumstances. Cao Bang 1.5%
Meanwhile, Vietnam’s Purchasing Man-
Source: General Statistics Office
agers’ Index (PMI) rose to 50.3 points in
January, according to an S&P Global survey
released on February 1. This shows that
manufacturers saw a return to growth due at its highest level for many years, to the socio-economic development plan and State
to renewed increases in new orders and detriment of Vietnam’s macro-economic budget estimates in 2024, containing 12
output, with signs of recovery in both the stability and growth outlook as it continues groups of tasks and solutions and 168
domestic and export markets. This is an to seek a higher level of economic openness. specific tasks, and Government Resolution
encouraging starting point for the country’s In order to meet the 2024 growth targets, No. 02/NQ-CP on the primary tasks and
manufacturing sector. the government has assigned tasks to each solutions to improve the investment and
Amid the positive signs, however, recent ministry and each sector with clear goals, business environment and enhance national
reports from various ministries and sectors focusing on accelerating industrial pro- competitiveness in 2024, both serve as a
predict further challenges for Vietnam’s duction, exports, and the disbursement of foundation to promote economic growth
industrial sector in 2024. The global economy public investment capital, boosting domes- with a firm eye on rapid and sustainable
is expected to struggle with low growth and tic and foreign investment attraction, and development.
rising inflation, while tightened monetary stabilizing the macro-economy. With a role of managing the industry
policies over the past two years are believed Notably, Government Resolution No. sector, the Ministry of Industry and Trade
to still have some lingering effect. Uncertainty 01/NQ-CP dated January 5, 2024, on the will focus on key solutions such as effec-
over and instability in the global economy is main tasks and solutions to implement the tively implementing business support poli-
cies approved by the government, to tackle
the difficulties and obstacles in production
and trade. Specifically, it will coordinate
with relevant agencies and localities to
Index of Industrial Production and Manufacturing and Processing Index promote and put into operation industrial
2M 2020 - 2024 production projects serving both exports
(percentage increase / decrease year-on-year) and domestic consumption.
In order to regain high levels of growth,
Index of Industrial Production
12 economic analysts believe that Vietnam’s
10.4 Manufacturing and Processing Index industrial production requires stronger
10
and more comprehensive growth drivers,
8 7.4 7.4 6.9 and have called for more support from
6.2 6.1 6.3 5.9 the government, ministries, sectors, local-
6 5.4 5.7
ities, and the banking system to accelerate
4 industrial production, particularly the
output of products, through boosting
2
domestic consumption and enhancing
0 trade promotions to expand orders and
2020 2021 2022 2023 2024
export markets. %
Source: General Statistics Office
40 Vietnam Economic Times April 2024 en.vneconomy.vn