Industrial manufacture still grows in 6 first months, despite difficulties

The province’s industrial industry in the first half of the year has still seen rapid growth, despite difficulties caused by the increase in bank interest rates, electricity-petrol prices…

 With the current lending interest rate of 23%-26% per year, borrowing loans to expand production is too hazardous for businesses, according to General Director of Dai Thien Loc Joint Stock Company Nguyen Thanh Nghia. This has also made the company delay the time of opening its steel plant in Binh Duong new city.

Production of car parts in southern Binh Duong province

 The electricity price adjustment, beginning from March 3, 2011, has also made hindrance for businesses in the field of industrial manufacture. According to experts, industrial product prices have increased by 2.05%-9.03% when electricity price has grown by 15.23% in accordance with the last adjustment.

 Power cuts over the early months of the year have also affected businesses’ production process. It is estimated that production costs have increased by 15%-20% while many businesses, especially small or medium-sized ones have faced the shortage of laborers and capital.

 Before the above situation, businesses have managed to use domestic production materials and power-saving technologies, contributing to reducing their production costs and product prices as well as enhancing their production efficiency. They have also made efforts in improving the lack of laborers.

 Besides, the implementation of the Government’s Decision No.21/2011/QD-TTg dated April 6, 2011 on extending the deadline for corporate income tax payment for one year, applied to small and medium enterprises has contributed to helping these enterprises to have more capital for their production-trading activities.

 Thanks to the timely measures of the State and the efforts of businesses, Binh Duong province has seen strong growth in industrial production value in the first half of the year. It is estimated that Binh Duong’s industrial production value has reached VND53,799bln or 20% of the country’s total production value. Of the total figure, VND17,380.8bln was contributed by the domestic investment sector while VND35,418.5bln came from the foreign investment sector.

 With the above figures, Binh Duong has also become one of the country’s localities with the highest industrial production growth at 17.5%. Binh Duong has also lured additional 48 businesses in the first half of the year. For businesses with stable operation, they have continued investing, upgrading their equipment and machines while expanding their workshops, contributing to promoting the development of the local industrial manufacture…

Reported by Khanh Vinh-Translated by K.T

• Vietnam's green logistics industry becomes attracttive to investors: Insiders (04/08)
• Vietnam’s wood processing sector sees rosy signs in first months (04/08)
• Diverse market of school supplies to serve the new school year (03/08)
• Many businesses have signed new, large-volume orders (03/08)
• Int’l logistic expo kicks off in HCM City (02/08)
• Cooperation made to develop import-export in Southeast Region (02/08)
• Local socio-economic growth continues positive momentum (02/08)
• Over VND11 trillion spent on VAT refunds (02/08)