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Manufacturing and processing industry is gradually recovering

Consumption index of the entire processing and manufacturing industry in the first six months of 2022 increased by 9.4% over the same period in 2021. Photo: Nguyen Thanh

According to data released by the General Statistics Office on June 29, industrial production in the second quarter of 2022 grew quite well because business activities of enterprises were maintained and gradually recovered, and the price increased rapidly, added value was estimated at 9.87% over the same period last year.

It is notable that the index of industrial production (IIP) in the first six months of 2022 compared to the same period last year of some key industries increased sharply. The consumption index of the entire processing and manufacturing industry in the first six months of 2022 increased by 9.4% over the same period in 2021.

On the contrary, some localities have low IIP index because production and business activities are still facing many difficulties, the processing and manufacturing industry has not regained the high growth momentum as before the pandemic.

The inventory index of the entire processing and manufacturing industry was estimated as of June 30, 2022, up 6.1% over the same period last month and 14.1% over the same period last year (the same period last year), at the time of the previous year increased by 29.5%. The average inventory rate of the whole processing and manufacturing industry in the first six months of 2022 is 78%.

Regarding labor, the number of employees working in industrial enterprises as of June 1, 2022 increased by 1.3% over the same period last month and up by 5.8% over the same period last year.

Although production and business activities of manufacturing and construction enterprises have recovered after the Covid-19 pandemic, the demand for production and construction has increased, however, due to China's gradual decrease in production the volume of steel production and export caused the global supply of iron and steel to decline, causing domestic iron and steel prices to be continuously pushed up. Besides, the price of gasoline and oil increased, leading to an increase in the price of other materials used for construction such as cement, sand, gravel, etc., which had a direct impact on the construction cost of signed projects. Enterprises and construction contractors are facing the risk of having to compensate for their losses when the price of raw materials increases for signed contracts.

In order to create favorable conditions and support production and business enterprises, businesses recommend that they need to be more drastic to stabilize the price of input materials for the construction industry so that businesses can stabilize construction.

At the same time, guiding the implementation of contract adjustment and contract price adjustment due to the impact of material price fluctuations for ongoing projects in accordance with the law, especially for traffic works to ensure the correct schedule. Accelerate the progress of compensation and site clearance to hand over to construction enterprises.

Besides, it is necessary to create conditions for enterprises to access capital more easily through convenient and quick bank loan procedures; supplement capital for projects funded by the state budget, limiting the outstanding payment for projects that affect the capital turnover of enterprises.

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