Businesses accelerate production and business activities
In the first five months of this year, the Index of Industrial Production (IIP) was expected to increase 6.8% year-on-year, with the processing and manufacturing industry growing by 7.3%, contributing 6.4 percentage points to the overall growth.
Enterprises receive more orders. (Photo: Vietnam+)
Hanoi (VNA) - Many key export sectors such as garments and textiles, footwear, electronics, and steel recorded positive recovery in the first ❀months of this year. With the market warming up, businesses are actively investing in technology and applying scientific advancements ♛to seize opportunities for sustainable growth.
Positive Signs
As one of the pioneering companies in using robotics, machine learning, AI, IoT, and smart manufacturing, Rang Dong Light Source and Vacuum Flask JSC has managed to reduce production costs amid rising raw material prices and borrowing interest rates.
According to Nguyen Doan Thang, General Director of the Rang Dong Light Source and Vacuum Flask JSC, automation and enhancing automation in production have created a smart and efficient manufacturing system, helping the company save energy and optimise resources. These significant steps mark Rang Dong's strong and sustainable transformation towards sustainable growth.
The recovery was also reflected in the sharp reduction of inventory levels for many businesses, with a positive outlook for orders in key markets. Dinh Duc Thang, Vice President of the Vietnam Plastics Association, noted that the plastics industry held a crucial position, strongly supporting the development of other industries in the country.
Meanwhile, the textile industry also looks promising as the demand for these products is forecast to increase by 5.6% compared to 2023, along with a reduction in inventory levels among major brands.
Industrial production shows signs of recovery in the first five months of 2024. (Photo: Duc Duy/Vietnam+)
According to Cao Huu Hieu, General Director of the Vietnam National Textile and Garment Group (Vinatex), these signs are also evident in the abundant orders in the first months of the year, even though processing prices remain low.
Investment in depth to promote sustainable growth
With market recovery, the Ministry of Industry and Trade representative noted that the number of new orders at enterprises continued to flourish.
This is reflected in the Index of Industrial Production (IIP) in May 2024, which is estimated to increase by 8.9% compared to the same period last year.
Overall, in the first five months of 2024, the IIP is estimated to increase by 6.8% compared to the same period last year, with the processing and manufacturing industry increasing by 7.3%.
Notably, industrial production growth is widespread, with 55 localities posting increased industrial production indices compared to the same period last year, and only 8 localities seeing a decrease.
Additionally, supporting industry activities are developing, providing raw materials for domestic production, and increasing the localisation rate in many manufacturing industries such as textiles and footwear.
Many domestic industrial production enterprises have improved their production, increased productivity and efficiency, and reduced production costs. These moves have enhanced competitiveness and helped businesses become direct suppliers to manufacturers, assemblers, and multinational corporations and participate in regional and global production networks and value chains.
A representative of the Son Ha Group said that his company previously provided water and kitchen equipment, usually produces according to monthly plans or in accordance with pre-ordered quantities. However, since applying Enterprise Resource Planning (ERP) software, there is more flexibility in production processes.
Connecting domestic and international businesses. (Photo: Vietnam+)
To support businesses in seizing market opportunities and promoting production and business in the industrial sector, a representative from the Industry Agency under the Ministry of Industry and Trade (MoIT) stated that MoIT is focusing on supporting businesses to connect with multinational corporations to seek opportunities to participate in their supply chains in Vietnam and abroad./.
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