January’s industrial production index in HCM City picked up 34.5% year-on-year as businesses stepped up operations in preparation for the approaching Tet (Lunar New Year) holiday.

Marked hikes were seen in wood, bamboo, and rattan processing (excluding beds, wardrobes, tables, and chairs) (up 97.4%), the production of metallic mineral products (87.6%), and motor vehicle manufacturing (86.4%).

Of major industries, electronics expanded 61.9%, pharmaceutical chemistry 51.7%, mechanics 44.3%, and food and beverages 27.3%.

The consumption index of the processing and manufacturing industry in the month increased 37.4% against the same period last year but its stockpile index rose 22.1%.

Nguyen Phuong Dong, Director of the municipal Department of Industry and Trade, said that thanks to COVID-19 prevention and control measures, the southern metropolis has gradually recovered its economic activities.

The city should, however, further study new policies, most notably the resolution on the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA).

He also urged enterprises to keep a close watch on the pandemic, keep in touch with customers, and raise proposals on market opening, while focusing on major exports.

The municipal Statistics Office reported that total export turnover of enterprises based in HCM City exporting via border gates around the country reached some US$3.63 billion, down 15.2% against December 2020.

China remained the largest market for HCM City’s enterprises, buying over US$716.6 million worth of goods during the month, up 20.3% year-on-year.

Meanwhile, HCM City’s exports to the European market stood at US$463.9 million in January, a year-on-year increase of 23.7%.

Experts said these achievements will create a foundation for enterprises in the southern economic hub to conquer markets in 2021 and adapt to changes in their customer base.