HCM City: IIP up 9.7 percent in four months

Go Dau Industrial Park, Long Thanh District of the southern province of Dong Nai. (Photo: VNA)

HCM City (VNA) - Ho Chi Minh City’s Index of Industrial Production (IIP) rose 9.7 percent year-on-year in the first four months of 2021, signalling a positive outlook for the local economy in the face of COVID-19, according to the municipal Department of Industry and Trade.

In April alone, its IIP increased 3.3 percent month-on-month, with mining experiencing the highest growth, of 58.4 percent, department director Bui Ta Hoang Vu said. Electricity production and distribution rose 25.6 percent, manufacturing and processing 2.8 percent, and water supply and waste treatment 1 percent.

Data from the municipal Statistics Office shows that the four-month IIP of four key industries grew 11.7 percent from a year earlier and was over 2.0 percentage points higher than the overall IIP. The highest growth was seen in electronics manufacturing (27.7 percent), followed by mechanics (17.5 percent), food and beverages (7.4 percent), and pharmaceuticals (2.4 percent).

Meanwhile, the IIP of traditional industries was down 4.4 percent year-on-year, most notably the leather industry, which contracted 3.2 percent, and the fashion industry 12.6 percent.

The southern economic hub saw foreign trade growing 21.3 percent during the period, with exports up 13.9 percent and imports 27.7 percent. The foreign-invested sector remained the primary engine of this growth, with exports and imports rising 20.5 percent and 11.7 percent, respectively.

China continued to be HCM City’s largest customer, importing more than 3.52 billion USD worth of goods and services in January-April, up 11 percent year-on-year and accounting for 24.8 percent of the city’s total exports. It was followed by the US, Hong Kong (China), Japan, and the EU.

According to the latest report from the European Chamber of Commerce in Vietnam (EuroCham), European business leaders started 2021 feeling positive and optimistic about Vietnam’s trade and investment environment.

EuroCham’s Business Climate Index (BCI) hit 73.9 points in the first quarter - the highest score since the third quarter of 2019, before COVID-19 hit global trade and investment. This continues a positive upwards trend in the index, which has risen more than 47 points over the last 12 months.

“The BCI confirms once again that Vietnam is open for business,” said EuroCham Chairman Alain Cany. “While countries continue to struggle with the impact of COVID-19, Vietnam has ensured that companies here can continue their operations as close to normal as possible. This is helping to drive economic growth and fuel the confidence of European business leaders.”/.