The General Statistics Office (GSO) forecast if the coronavirus epidemic is stamped out in the first quarter this year, Vietnam’s industrial production value in the first quarter would increase by 2.68 percent year-on-year, lower than growth rate of 9 percent in the first quarter of 2019 and 10.45 percent in the first quarter of 2018.

Workers at a packaging factory in Hung Yen province
(Illustrative photo: VNA)

Production value of the manufacturing and processing sector, accounting for a large segment in the domestic industrial production, is estimated to increase only 2.38 percent. If there had been no epidemic, the processing and manufacturing sector was expected to surge by 10.47 percent.

In addition, other industrial products would also lose production value due to an extended epidemic including textiles, garment, leather and shoes that need imports of raw materials from China such as yarn, fabric, cotton, thread, needle, leather, and other equipment and accessories for the textile, leather and garment sectors.

To stabilise domestic production, GSO General Director Nguyen Bich Lam said the GSO had proposed the Government monitor trade activities, especially key export products and markets, and then solve problems of producers and traders of those products.

In addition, the Government and ministries should support businesses in sectors that had suffered losses from the coronavirus epidemic, especially the textile, leather, electronics, automotive, steel and food processing sectors.

The State should support businesses in getting loans, training workers and expanding distribution systems.

Meanwhile, localities should take recommendations from enterprises to help them during the current difficult time. 

According to Minister of Planning and Investment Nguyen Chi Dung, localities should implement important public investment projects for local socio-economic development. 

The State should focus on improving the business environment to encourage private economic development, he said.