First half industrial production up 5.8%

June's industrial production index (IPI) was estimated to increase 0.5% against the previous month, and this figure was also up by 6.5% against June last year.

The processing and manufacturing industry posted growth of 7.8% against the same period last year, while its consumption rose 9%.

The industry's higher consumption increases versus that of production is a positive signal for the industry's recovery and development, in particular, and for the whole economy, in general.

Officials pointed out that a number of industries showed high growth rates in the first half of the year, including rolled steel production (up 25.4%), automobiles (up 24.2%), mobile phones (up 22.7%) and leather footwear (up 22.2).

Thanks to the rise in consumption, the number of recruited workers in industrial production firms as of June 1 saw an increase of 0.8% against the previous month; the rise was 2.7% compared with the same period last year.

The Vietnam Chamber of Commerce and Industry (VCCI) in a recent report also noted that H1 2014 saw a sharp improvement in business conditions compared with H2 last year, despite the impact of various challenges.

The chamber forecast that the total consumption of domestic firms will continually rise in the second half of this year.

In a move to boost production, the prime minister last week required VCCI and other relevant ministries and agencies to resolve the requests of businesses and address their difficulties in a timely manner before reporting the issues each month to the prime minister and each quarter to the government.

The relevant bodies have been instructed to focus on improving the business and investment environment, supporting firms in accessing credit and markets, and restructuring firms.