Ho Chi Minh City’s Index of Industrial Production (IIP) in the first quarter of 2023 declined by 0.9% compared to the same period last year, the municipal Department of Industry and Trade reported at a press conference on April 3.

The decline was attributed to increasing prices of materials, tightening monetary policy due to inflation, and the risk of economic recession in many countries.

According to the department, the city’s IIP reduced by 15% in January and 2.5% in the first two months.

The four key sectors, namely the electronic component industry, manufacturing products from rubber and plastic, pharmaceutical chemical industry, and food and beverage processing, are continuing to drive industry growth thanks to strong recovery, investment expansion, and increasing market demand.  HCM City’s industrial output in the first quarter rose 8.2% year-on-year.

The forecast for the production and business situation in Q1 was more positive compared to that of Q4 of 2022, with 18.6% of surveyed enterprises said their production and business performance was better while 36.1% remained stable, and 45.3% saw more difficulties, according to Director of the municipal Department of Industry and Trade Bui Ta Hoang Vu.

State-owned firms were the most optimistic about production and business with 64.1% experiencing better performance or stability. The rates among foreign-invested and non-State enterprises were 55.1% and 53.3%, respectively.

As many as 37.4% and 36.3% of the respondents expected an increase and stability in their orders in the second quarter of 2023, respectively, compared to the last quarter. Just 26.3% of the surveyed businesses forecast a drop in their production and business.

In the coming time, the department will focus on support activities based on three business development programmes and products in the mechanical - automation industry, rubber - plastic and food processing industries.

Accordingly, the department will enhance support for local businesses in introducing and promoting their products, supporting production , and creating opportunities for domestic and foreign businesses to connect and join supply chains through fair and exhibition activities.

VNA