INDUSTRY, TRADE SECTOR BOASTS OPTIMISTIC RESULTS IN 2015

Industrial production increased impressively to contribute to the overall economic growth. The index of industrial production increased 9.8 per cent, much higher than the growth in the previous year and 2 percentage points higher than the target (7.8 per cent). Processing and manufacturing sectors expanded 10.6 per cent and led the overall industrial growth. In spite of numerous difficulties, mining sector managed to maintain stable performances. Mechanical engineering sector recovered to catch up with the overall trend.
 
Vietnam’s exports brought in estimated US$162.4 billion in 2015, an increase of about 8.1 per cent over 2014. 23 commodities brought home over US$1 billion of export revenue. The structure of Vietnam’s exported products positively changed and went in line with the roadmap and objectives of the import development strategy in the 2011-2020 period, with a vision to 2030.
 
The country’s total imports were estimated at US$165.6 billion in 2015, up 12 per cent against 2014. Imports importantly served domestic production. Vietnam saw a declining share of imported consumer goods and a rising share of fuels and materials for production. Trade deficit was effectively controlled in 2015, estimated to reach US$3.17 billion, equivalent to 2 per cent of exports.
 
Stable commodity supply and low input prices were positive factors to boost consumption. Compared with 2014, low inflation helped improve domestic consumption; inventories returned to normal levels; and total retail turnover of goods and services rose 9.5 per cent year on year.

Market management was aggressively deployed since the start of the year.
 
Vietnam made long strides in international economic integration in 2015 as it signed free trade agreements with the Eurasian Economic Union (EEU) and South Korea; and concluded FTA negotiations with the European Union (EU) and the Trans-Pacific Partnership (TPP). With these results, Vietnam had FTA ties with 55 economies across the world, including 17 G20 economies and all seven G7 economies.
 
In 2016, the trade and industry sector expected the industrial production value to grow 9-10 per cent, and exports to rise 10 per cent to US$178 billion. Trade deficit was expected to be kept below 5 per cent of exports. Total retail sales of goods and services increased 11.5 - 12 per cent.
 
At the review meeting of the industry and trade sector on December 31, Prime Minister Nguyen Tan Dung emphasised key tasks that the sector needed to carry out in the coming time. The sector needs to improve institutions, mechanisms, policies, strategies and plans to create favourable conditions for industrial and commercial fields to develop more strongly and more sustainably. This is extremely important as institutions are soft infrastructure and there will be no development without appropriate policies and mechanisms.
 
He also asked the industry and trade sector to constantly enhance industrial production capacity, promote trade and service development, boost supporting industrial development, and increase the localisation rate in industrial products and services. The sector also needs to grasp opportunities of and advantages of international integration achievements, especially from international economic integration; encourage and facilitate export development; focus on supporting businesses to expand exports like garment and textile, leather and footwear, wooden furniture, and agricultural and aquatic products; effectively control trade deficit and build technical barriers to protect production and domestic market in line with international commitments and practices.
 
PM Dung placed emphasis on domestic market development - a huge potential market with a population of over 90 million. “We have to win in our home market. I am pleased that over 90 per cent of goods at supermarkets are made-in-Vietnam.”
 
A major task that PM Dung addressed is the industry and trade sector will effectively restructure to enhance quality, efficiency and competitiveness and companies will reorganise to boost operational efficiency, labour productivity and governance capacity.

Source: VCCI