HCM City (VNA) – The Index ofIndustrial Production (IIP) of Ho Chi Minh City sustained its growth during thelast eight months, gaining 0.24 percentage points month on month and predictedto rise 8.1 percent this year – higher than the 7.9 percent in 2017.

According to the municipal Department ofIndustry and Trade, the IIP last August increased by 6.15 percent from a yearearlier. It added up to the 7.51-percent pace in the eight months while thefigure in the same period last year was 7.31 percent.

The August index was high compared to the modestexpansion since April, showing industrial production is gaining momentum, creatinga basis for the sector to achieve this year’s targets, the department said.

Deputy Director of the department Nguyen PhuongDong said HCM City-based businesses maintained stable operations and growth inthe first eight months of 2018. 

A favourable investment climate has helped the cityattract many foreign and domestic investments into processing andmanufacturing, he said, noting that foreign direct investment (FDI) capitalpoured into this industry accounted for 24.9 percent of total FDI inflow intoHCM City.

Maintained support has also aided keyindustries, helping local businesses expand markets, upgrade technology andimprove product quality and competitiveness. Among the key industries, the foodprocessing and beverage sector increased by 7.32 percent, chemicals – rubber –plastics 3.66 percent, electronics production 15.89 percent, mechanics 10.13percent, textile-garment 10.51 percent, and footwear 7 percent.

Some businesses said the key industries’ growthwas driven by the fast expansion of their sub-indices.

Between January and August, total retail salesof goods and consumer service revenue in the city reached 679.8 trillion VND(29.4 billion USD), up 12.6 percent year on year, compared to the 10.3 percentin the same period last year. Notably, monthly spending per capita for food andbeverages has risen by almost 13 percent each year over the past decade.

Ly Kim Chi, Chairwoman of the Food and FoodstuffAssociation of HCM City, said the food and beverage sector is still a magnetfor investors thanks to the market’s high growth rate and consumption demand.Total retail sales of food and foodstuff in the period were estimated at morethan 75.5 trillion VND (3.3 billion USD) while export value reached 118.87million USD, up 13.6 percent and 14.5 percent year on year, respectively.

The Department of Industry and Trade said it is workingwith the municipal Statistics Office to monitor the production and consumptionsituation so as to take measures to support local businesses. –VNA