Stable growth

At the press conference, Mr. Bui Huy Son - Director of the Department of Planning and Finance, Ministry of Industry and Trade also informed that continuing the growth momentum from the end of 2023, industrial production in the third quarter of 2024 grew more positively than the previous quarter, the added value of the industry is estimated to increase by 9.59% compared to the third quarter of 2023.

In the first 9 months of 2024, the total added value of the entire industrial sector is estimated to increase by 8.34% over the same period last year, contributing 2.71 percentage points to the growth rate of the total added value of the entire economy. In particular, the processing and manufacturing industry is the growth driver of the entire economy with a growth rate of 9.76% (increased by 7.21% in the first quarter; increased by 10.39% in the second quarter; increased by 11.41% in the third quarter), contributing 2.44 percentage points to the growth rate of the total added value of the entire economy (GDP in the first 9 months is estimated to increase by 6.82% over the same period last year); the electricity production and distribution industry increased by 11.11%, contributing 0.43 percentage points; the water supply and waste and wastewater treatment industry increased by 9.83%, contributing 0.06 percentage points; The mining industry alone decreased by 7.01%, reducing the overall growth rate by 0.22 percentage points.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan chaired the press conference. Photo: Can Dung

In September 2024, due to the impact of storm No. 3 (Yagi), the production growth streak after 5 consecutive months of increase was broken, causing the purchasing managers' index (PMI) in September to fall below the 50-point threshold (reaching 47.3 points compared to 52.4 points in August). Therefore, the industrial production index (IIP index) in September 2024 decreased slightly compared to the previous month (down 0.2%).

However, thanks to the positive recovery of industrial production in recent months, the industrial production index in September 2024 still increased by 10.8% over the same period last year.

In the first 9 months of 2024, the IIP index is estimated to increase by 8.6% over the same period last year (the same period in 2023 increased by only 0.3%). Of which, the processing and manufacturing industry increased by 9.9% (the same period in 2023 increased by only 0.2%); the electricity production and distribution industry increased by 11.1% (the same period in 2023 increased by 2.6%); the water supply, waste and wastewater management and treatment industry increased by 9.9% (the same period in 2023 increased by 4.9%); the mining industry alone decreased by 6.5% (the same period in 2023 decreased by 3%).

Also according to the Ministry of Industry and Trade, in the first 9 months of 2024, industrial production increased widely when the IIP index in the first 9 months increased in 60/63 localities. In particular, some localities had a fairly high double-digit increase in the IIP index due to the high increase in the processing and manufacturing industry or the electricity production and distribution industry (the IIP index of Lai Chau increased by 43.3%; Tra Vinh increased by 41.9%; Phu Tho increased by 38.7%; Khanh Hoa increased by 36.4%; Bac Giang increased by 27.7%; Son La increased by 27.3%; Thanh Hoa increased by 20.4%...).

In addition, the consumption index of the entire processing and manufacturing industry in the first 9 months of 2024 increased by 12.5% ​​compared to the same period in 2023 (the same period in 2023 increased by only 0.6%). Meanwhile, the inventory index of the entire processing and manufacturing industry is estimated to increase by 5.2% as of September 30, 2024 compared to the same period last month and increase by only 8.5% as of the same period last year (the same period last year increased by 19.4%). At the same time, the average inventory ratio of the entire processing and manufacturing industry in the first 9 months of 2024 was 76.8% (compared to the average of 85.3% in the first 9 months of 2023) ... are signs of a positive recovery in production and product consumption.

Sprint to the finish line

The Ministry of Industry and Trade assessed that the fourth quarter of 2024 is the "peak season" for many manufacturing industries to serve the holidays and festivals, and production is likely to remain at a high level. Therefore, industrial production is likely to accelerate growth.

Industrial production in the third quarter of 2024 grew more positively than the previous quarter, with the added value of the industry estimated to increase by 9.59% compared to the third quarter of 2023.

However, shipping rates have not shown any signs of cooling down; the negative impacts of super typhoon Yagi on domestic production activities will be a significant difficulty and challenge for industrial production.

To overcome challenges and take advantage of opportunities, the Ministry of Industry and Trade has proposed many solutions to help the industry promote growth and complete the 2024 plan.

In particular, focus on innovation and improving the quality of institutional building work. Effectively implement approved plans to implement the National Sectoral Planning in the energy and mineral sectors; focus on building mechanisms and policies to promote the development of fundamental industries.

Complete with quality and on time the assigned tasks in the program of developing legal documents of the Industry and Trade sector in 2024. Especially the projects to amend and supplement laws (Law on Electricity (amended), Law on Chemicals, dossiers for drafting the Law on development of key industries, Law on efficient and economical use of energy) and strategies and plans for industry development.

Urgently complete and submit to the Government for promulgation mechanisms and policies in the energy sector (electricity, petroleum) such as encouraging the development of renewable energy, the mechanism for self-produced and self-consumed rooftop solar power, offshore wind power development policy, the two-component electricity price mechanism, and the price framework mechanism for electricity types.

Continue to promote the implementation of solutions to restructure the industry and trade sector based on the foundation of science and technology, innovation and digital transformation. Speed ​​up the completion of key infrastructure projects, remove barriers in administrative procedures to implement new production and mining projects, contributing to creating momentum for economic growth.

Continue to focus on removing difficulties and obstacles and supporting businesses to restore production and business, especially those affected by storm No. 3, to put large industrial projects into operation to increase production capacity; support businesses in finding import and export markets for raw materials, spare parts and components for production, and deeply participate in the global supply chain.