According to the Department of Industry and Trade’s January 2023 Industrial Production and Trade Activity Report, the Purchasing Managers’ Index (PMI) fell further in December 2022 (the peak month of production for the lunar new year) compared to November 2022, for the second straight month below 50 points since the economy reopened.

INDUSTRIAL PRODUCTION INDUSTRY IN JANUARY 14.6% down

The reason for the decline, the Ministry of Industry and Trade said, was that the number of orders, the size of new orders, production and purchasing activities by companies all fell. At the same time, the New Year of the Rabbit will take place in January 2023, so the number of working days will decrease by 8-10 days compared to the previous month and the same period last year.

In addition, many companies increased production last month to meet consumer demand during the Tet holiday, causing the number of orders and volume of orders to decrease, which impacted industrial production in January 2023. The Industrial Production Index (IIP) is estimated to have decreased by 14.6% in January 2023 compared to the previous month and by 8% compared to the same period last year.

Most companies in the processing and manufacturing industries have temporarily halted production for the Tet holiday, with the exception of a few companies in the paper, cement, steel, fertilizer, nitrogen, chemical and some other industries. processed products, confectionery … nevertheless maintain a certain output due to the characteristics of the production lines that must be operated continuously in these industries.

Some companies in other industries such as electronics, automobiles, etc. still maintain and operate a number of line parts with continuous production mode (e.g. powder coating lines in automobile companies…) but do not produce a new end product. Therefore, in January 2023, the production index of manufacturing and manufacturing fell by 9.1% compared to the same period last year.

The industrial production index for January 2023 decreased in 30 locations and increased in 33 locations across the country compared to the same period last year, mainly due to the rising and falling influence of the processing and manufacturing industries and the power generation and distribution industries.

With wide openness and the deepening process of international economic integration, the global economic context continues to pose challenges for Vietnam’s socio-economic development in 2023.

Therefore, since the beginning of the year, the Ministry of Industry and Trade has focused on aligning production promotion, in particular on eliminating difficulties for manufacturing and business enterprises, restoring production, supply chains and the workforce; Eliminate difficulties for the early start-up of important industrial projects and create new production capacities.

In addition, units direct to ensure the progress of investment and construction of key power source and grid projects. Focus on eliminating difficulties to put into operation large-scale energy projects with important roles such as Thai Binh 2 thermal power station, Van Phong 1…; to test, inspect, urge and advise on the removal of difficulties and obstacles for key projects in the field of electricity and renewable energy; ensure the safe and efficient operation of the power transmission system.

8 SOLUTIONS TO BOOST PRODUCTION

In order to promote industrial development, Mr. Truong Thanh Hoai – Director of the Department of Industry (Ministry of Industry and Commerce) said he will carry out 8 key tasks in the coming period.

The first, Implementing the contents of industrial development in Resolution No. 29-NQ/TW to further promote the country’s industrialization and modernization.

In which, including the perfecting of institutions and policies, the construction of a special law on basic industrial development with preferential policies on tax, finance, credit, land, etc., the use of supporting activities to promote the development of basic industries and high value-added industries, contribution to promote structural change towards the proportion of manufacturing and manufacturing.

Formulate and implement a national program to improve the ability of Vietnamese manufacturing to become independent, self-reliant, self-reliant and self-reliant by 2045 (Make in Vietnam 2045); Supporting the industrial development program until 2030.

Monday, As the legal system takes time to adapt and perfect, to replace the specialist planning abolished by the planning law, as well as to fulfill the state administrative work and support the development of the specialty, the department will continue to research and develop strategies for a series of key industries. In 2022, the Prime Minister approved the Strategy for Sustainable Development of the Textile, Garment and Footwear Industry for the period up to 2030 with a vision up to 2045.

According to the results of 2022, the Ministry of Industry will continue research and develop a strategy for the development of the dairy industry in the period up to 2030 with a vision up to 2045; the paper industry development strategy by 2030 with a vision by 2045; and the automotive industry strategy by 2030 with a vision by 2045.

Tuesday, Coordinating with relevant authorities and entities to continue to resolve difficulties and address outstanding and long-standing issues within the project: Thai Nguyen Steel – Phase 2; Vietnam Trung Steel and Phuong Nam Paper Mill. At the same time, creating favorable conditions for the start-up of major industrial projects, especially projects related to large-scale mining and mineral processing, steel projects in Nam Dinh, Binh Dinh, Phu Yen.

Wednesday, Coordinating with the Government Office to effectively implement mineral planning to mobilize new growth resources, increase production capacity, develop the materials industry and assist companies in finding new markets to import raw materials, spare parts and components suitable for production.

Thursday, continue to focus on solving difficulties and obstacles and support companies to recover production and business after the Covid-19 epidemic.

Friday, Coordinating with the Ministry of Science and Technology in the research, formulation and dissemination of national regulations and standards on production for a number of conditional lines of business for commodity No. 2.

Saturday, Effectively implement the Industrial Development Support Program with a focus on human resource consulting and training solutions; Supporting the construction and operation of smart factory models, digital transformation, green manufacturing and clean manufacturing to help companies fully participate in the global value chain.

At the same time, urgently build joint technical centers for research, innovation, absorption and development of industrial technology in Hanoi and Ho Chi Minh City, especially core technologies, technology and technology.

In addition, the department strives to simultaneously focus on solutions to promote international cooperation activities, connect with foreign direct investment enterprises to maintain, expand and seek markets, and make the most of export surplus exports of industries and fields that Have benefits and needs worldwide.

Eighth, Coordinating with relevant authorities and entities, and promoting the role of industry and consumer organizations, focusing on the expansion and development of the domestic market towards rapid and sustainable development.