Positive year forecast for industry

Restructuring will continue to be a priority this year, according to the Ministry of Industry and Trade (MoIT).

Industrial production showed signs of recovery in 2013, with the IIP growing by 5.9% and inventories decreasing. However, the macro-economy did not fully stabilise, consumers continued to budget carefully and free trade agreement negotiations remained unfinished. In addition, natural disasters and diseases posed a continued threat.

MoIT Deputy Minister Le Duong Quang said Vietnam’s industrial production of Vietnam was still dependent on the world economy and thus vulnerable to global fluctuations.

He added technology remains low-level and the support industries do not receive adequate investment, meaning the country depends on imports for many raw materials.

Nguyen Tien Vy, director of the ministry's Planning Department, said that the industry and trade sector will hasten restructuring, especially of State-owned enterprises, to enhance efficiency and competitiveness.

He stressed that technology should play a bigger role in production and the localisation rate should be increased.

A Vietnam Chamber of Commerce’s survey shows 42.5% of companies plan to expand business in 2014 while 50.7% maintain their production scale.

This means enterprises feel a better business year coming in 2014, said Pham Thi Thu Hang, the VCCI's general secretary.

Hang suggested enterprises improve their risk management capacity in order to take advantage of the Government's support policies.

Chairman of the Vietnam Mechanics Association, Nguyen Van Thu, said that preferential capital sources should be made accessible to enterprises to help them boost production.