Industrial output up after strong month
The index of industrial production (IIP) for July rose by 7% year on year, according to the General Statistics Office (GSO).
In July, mining and manufacturing production increased by 6.8%, while the power sector grew by 9.2% compared to the previous year. Water supply and waste treatment saw a smaller rise of 1.6%.
Based on July’s figures, total industrial output in the first seven months of 2013 went up by 5.2% over the same period last year, the GSO reported.
During the January-July period, leather products made the biggest annual gain, jumping by 17.3 percent, followed by motor vehicles and paper, which rose by 14.3% and 11.6%, respectively.
The IIP for most cities and provinces nationwide increased during this period, with the northern province of Vinh Phuc recording the highest growth of 24.4%, followed by the central city of Danang at 10.5%. HCM City rose by 4.2% and Hanoi by 5.3%.
Earlier this month, the Ministry of Industry and Trade forecast that rising orders and signs of recovery in the property sector would drive industrial growth in the final months of the year.
The GSO also reported that the inventory index for the manufacturing industry as of July 1 increased by 8.8% against the same period last year.
However, it noted that further increases are not sustainable, partly because manufacturers have reduced production due to low consumer demand.
Large stockpiles are still leading to cut backs in production levels in beverages, cigarettes and pharmaceuticals, yet garments, leather, vehicle engines and electronics-computers all saw inventories fall.