Industrial, trade growth trend sustained despite COVID-19: official

Workers process fish for export at a factory in Tac Cau Fishery Port

Industrial Park in Chau Thanh district, Kien Giang province (Photo: VNA)

Speaking at the ministry’s regular press meeting for the second quarter, he added exports have maintained high year-on-year growth, which is relatively sustainable thanks to the even growth in shipments of all the important commodities such as electronics, textile-garment, footwear, machinery, and farm produce, and to major markets like the US, China, the EU, the Republic of Korea, Japan, and ASEAN.

Regarding problems in industrial and trading activities, Hai said COVID-19 outbreaks in large industrial parks have had certain impacts on industrial production growth as well as supply chains.

Besides, the import of production materials accounts for a “very big” proportion, about 90 percent, thus pushing up the import value and affecting the trade balance.

Lockdowns or social distancing measures driven by coronavirus outbreaks in some localities have also eroded consumption demand, especially for non-essential goods, which has influenced retail sales, according to the official.

So far, he said, industries and trade have basically developed as planned, with total retail sales achieving about 38 percent of this year’s target and exports over 44 percent.

The increase in index of industrial production is currently higher than expected, rising by 9.9 percent in the first five months compared to the targeted 8 percent. The figure is forecast to maintain at some 9 percent in the first half of 2021, compared to the 8-percent target for the whole year.

Exports are set to increase by about 21.7 percent while total retail sales and service revenue 7.1 percent during January - June, compared to the year’s respective targets of 4 - 5 percent and 8 percent.

The industry and trade sector will keep making efforts to achieve its growth targets as well as those of the country, the Deputy Minister said.

Particularly, the ministry will continue working to promote overseas shipments, diversify both export and import markets, optimise opportunities generated by free trade agreements, and remove barriers to enter new markets.

Source: VNA