In the first 8 months of 2023, the province's index of industrial production (IIP) increased by 6.03% over the same period last year. Of which, the processing and manufacturing industry increased by 6.74%; the production and distribution of electricity, gas, steam hot water and air conditioning rose by 1.96%. A number of industries maintained stable production and had an increase in index over the same period last year... Industrial production results continue to change positively in the context of the world's general difficulties, decreasing orders, low demand, which shows the flexible, creative and effective management of different levels of government, functional sectors and the efforts, dynamism and sensitivity to adapt to the difficulties of businesses.

Manufacturring at Nestle Vietnam Co., Ltd. (Thang Long II Industrial Park)

However, the high global inflation, the decline in consumer demand in some markets, which are important trading partners of Vietnam, have also affected the export of goods in the province. Enterprises in the textile and garment industry have been flexible, restructured products, secured orders, kept up with trends, and met market demands. However, the textile market still has many psychological factors; buyers themselves also have to listen and wait for the reaction of consumers to make an order, leading to small orders and urgent delivery time. The processing and manufacturing industry plays a key role, leading the overall growth of the industry, but the industry's inventory index at the end of August is estimated to increase compared to the same period last year. Not only facing difficulties in orders, enterprises in the province also face many difficulties at the same time such as: Domestic interest rates are high, about 9-11% in the first 4 months of the year, while other countries maintain at 3.5-7%; domestic electricity prices increase by 3% since the beginning of May, also raising pressure on businesses...

According to the forecast of the Industry and Trade industry, in the last months of the year, industries will continue to face many challenges. In the world, the economic and political situation still has many complicated factors, especially the tension between big countries; the global economy is still in a difficult period. Domestically, purchasing ability is expected to slowly recover; businesses face difficulties due to high raw material input costs; along with the slow recovery of the real estate market, it will continue to directly affect many related manufacturing industries...

To overcome difficulties and challenges and maintain industrial production growth, in the coming time, the province will direct all levels and functional branches of the province to focus on effective implementation as soon as the Central Government deploys programs, legal policy as the basis for new growth resources for industries in the short term as well as in the long term. To pay attention to supporting and creating conditions for industrial enterprises, especially small and medium-sized enterprises, to access and enjoy more favorable capital regimes and policies such as: Reviewing to continue implementing extension, postpone, exempt, or reduce some taxes and fees; lowering interest rates, providing preferential loans, maintaining lending interest rates at appropriate levels...), having more resources to recover and develop production and business. To continue to closely follow the production situation of industries and fields, promptly grasp and support businesses in removing difficulties to boost the development of industrial production. In addition, the province drastically directs to promote the disbursement of public investment capital to create more motivation for economic growth; at the same time, there are mechanisms and policies to stimulate market consumption and use of products and services of key industries such as mechanical engineering, steel, construction materials, means of transportation...; actively tackles difficulties to restore the real estate market to create motivation for consumption as well as related industries and construction.

To regain export growth momentum for products, the Department of Industry and Trade will increase connection programs with the Department of Industry (Ministry of Industry and Trade) with businesses in the province to participate in the supply chain of FDI enterprises and large global enterprises, thereby opening up opportunities to consume more sustainable products. To support and advise businesses and industries to learn about regulations and barriers to exporting to foreign markets to make effective responses. Besides, in addition to finding large distribution channels, businesses need to pay attention to finding "niche" markets to export, preventing their export activities from falling into a state of disruption due to interruptions by large distributors. As for the textile industry, it is forecasted that at least by the end of the third quarter or the fourth quarter of 2023, the market will recover and take until 2024 to stabilize. Therefore, textile and garment enterprises need to ensure quality, increase productivity, reduce unnecessary costs, suspend expansion programs, and only consider in-depth investment; research plans to reduce production scale, maintain core strength... to preserve resources, be ready to boost production and export of goods when the market recovers. In the long term, continue to allocate resources, aim to systematically invest in technology and human resources, meeting green targets, clean production, and circular materials and products.