Vietnamese enterprises and authorities are taking action right from the start of 2024 to promote industrial production though many challenges remain in the global economy.

The General Statistics Office (GSO) reported that the Index of Industrial Production (IIP) in January fell 4.4% month on month but still went up 18.3% year on year. In particular, the processing - manufacturing sector expanded 19.3% from a year earlier, contributing 15.1 percentage points to the overall growth.

Notably, the January IIP posted year-on-year increases in 60 provinces and cities, with declining in just three others, the GSO said, attributing the fast expansion in some localities to sharp rises in the processing - manufacturing sector and the production and distribution of electricity.

Those recording high index rises in the processing - manufacturing sector include Quang Ninh province 157.9%, Bac Giang province 57.7%, Nam Dinh province 56.9%, Vinh Long province 51.2%, Kien Giang province 47.7%, Phu Tho province 39.4%, and Ho Chi Minh City 26.9%.

Though the global economy is still facing numerous difficulties and market demand has yet to recover, the country’s IIP has continued improving thanks to the efforts of producers to seek new orders and prepare goods for the Lunar New Year (Tet) holidays, according to the GSO.

In HCM City, production and business activities of local firms have become vibrant since the year’s beginning. The municipal Statistics Office noted the local IIP increased 26.9% year on year in January.

Among the companies based in the southern economic hub, the Toan Viet electronics and informatics company recently coordinated with partners to debut Vietnam’s first set of artificial intelligence-powered desktop computer, named ROSA PC AI, that uses the Ryzen 8000G Series processors.

Experts held that despite impacts of the global economic recession, localities nationwide have applied flexible measures to create the best possible environment for investors to carry out projects while at the same time attracting new investors to high-tech and environmentally friendly industries.

In the northern province of Vinh Phuc, some large investment projects have become operational, including the Bhflex Vina-1 electronic component factory worth 816 billion VND (33.5 million USD), a vehicle production and assembly plant invested with 564 billion VND by the Aeon Motor Vietnam Co. Ltd, and an 840 billion VND plant project that produces trays and boxes for industrial and e-commerce activities.

These businesses are promoting production and expected to enjoy vigorous growth in 2024 and 2025.

Truong Thanh Hoai, Director of the Industry Agency under the Ministry of Industry and Trade, said that this year, the agency will press ahead with effectively implementing the Government-approved enterprise support policies to remove obstacles to production and business activities, particularly in such key export sectors as textile - garment and leather - footwear, along with foundation industries like automobile, mechanics, and steel.

It will accelerate the completion and inauguration of new industrial production projects to serve export and domestic consumption, he went on.

For its part, Vinh Phuc will continue strongly reforming its growth model, with a focus on industrial development. It will shift from an industrialisation policy based on traditional advantages like geographical location, cheap labour, and natural resources to the one based on modern competitive edges like human resources quality, labour productivity, infrastructure, and progressive regulations.

The province will also effectively step up dialogue with, and assistance for enterprises to recover and boost industrial growth, according to local authorities.

Phi Thi Huong, Director of the GSO’s Industry and Construction Statistics Department, recommended localities increase demand stimulation and promotional programmes to fuel purchasing power, thus helping expand the domestic market for enterprises amid export difficulties. They should also hold more business-matching events to help firms seek partners and boost sales.

Meanwhile, Minister of Planning and Investment Nguyen Chi Dung said this ministry will propose the building of some preferential mechanisms and policies to assist large enterprises to grow further. Part of the assistance will be sourced from the Investment Support Fund, collection from the global minimum tax, and other legal sources./.