Report of Department of Industrial Economy – Ministry of Planning and Investment in April 24th 2012.
1/ Overview:
Generally in the first 3 months of 2012, the Industrial Production Index rose 4.1% as against the same period last year. Of which: the mining industry increased 3.2%; the manufacturing industry rose 3.2%; the power, gas and water production and distribution rose 13.7% from last year’s same period.
Some industrial branches saw a high increase as compared with the same period of 2011 such as: crude oil and natural gas exploitation rose 6%; hard coal mining and collection increased 08%; motorcycle manufacture increased 16%; beer manufacture put up 4.5%; power production, concentration and distribution rose 14.2%, medicine, pharmaceutical chemistry and drug production surged 20.1%; and foodstuff production rose 15%,...
The Industrial Production Index of a number of industrial branches decreased year on year such as: the fibre production and fabric weaving reduced 2.2%; the pulp, paper and cover decreased 1.5%; the fertilizer and nitrogenous compound decreases 5.9%; the steel reduced 15.8%; the footwear decreased 6.9%; the cement reduced 10.7%; the stone, sand, gravel and kaolin exploitation reduced 17.6%;
2. Production situation of some main industrial products:
- Some products gained a high growth rate as compared with the same period such as: crude oil mining reached 4 million tons, increasing 10.3%; gas-formed natural gas attained 2.42 million m3, rising 3.9%; Liquefied Petroleum Gas(LPG) achieved 201.2 thousand tons, surging 27.8%; processed seafood and aquatic product gained 373.7 thousand tons, up 13.6%; powdered milk accounted for 17.5 thousand tons, rising by 15.5%; cloth weaved from cotton yard reached 65.2 million m2, increasing 16.7%; shoes, slipper, leatherette boot for adults got 13.9 million of pairs, up 15.7%; washing machine was up 17.1%; motorbike increased 17.1%; production electricity raised 15.1%; commercial tap-water increased 8.6%.
- Some products showed a decrease against the same last year such as: fossil coal accounted for 11.4 million tons, equaling 99.5% year on year; sports shoes achieved 73 million of pairs, decreasing by 4.1%; chemical fertilizer gained 527.6 thousand tons, down 9.2%; NPK fertilizer decreased 8.9%; chemical paint reached 67.9 thousand tons, down 9.8%; cement got 12,1 million tons, decreasing 10.7%; round steel of kinds accounted for 697 thousand tons, down 21.9%; automobile decreased 19%; air-conditioner was down by 80.8%.
- Up to March 01, 2012, the stock index for the whole manufacturing sector rose 34.9% from last year’s same period, the stock index of most industrial production and processing sectors is higher as against the same period last year; in particular: cement, lime, mortar production sector and steel, iron production sector increased 55% and 59.1% respectively (this is caused by the narrowed steel, cement market when implementing the policy for investment reduction, public debt reduction, and the real property market has not had a recovery sign, the construction demand is not high); fertilizer and nitrogenous compound production sector soared 62.7%; beer and malt production increased 48%; clothing production raised 41.4%; fibre and fabric weaving production was up 6.6%; motor vehicle manufacturing raised 38.7%; medicine, pharmaceutical chemistry and drug production increased 10.1%.
3. Production situation of some key industrial sectors:
a. Power sector:
In the 1st quarter and the early April, the power yield of hydropower plants was exploited under the adjustment plan to ensure sufficient power supply to the dry season of 2012; coal thermoelectric, gas turbine sources were developed upon the actual load.
In order to meet the power demand for socio-economic development and people’s life from March to June, the Ministry of Industry and Trade has directed the Electricity of Vietnam to maintain the water level of large hydroelectric lakes not being decreased too below prior to June 01 of this year, especially hydroelectric lakes in the Central region. The Electricity of Vietnam coordinates with Vietnam National Oil and Gas Group and Vietnam National Coal, Mineral Industries Group to arrange a reasonable plan and shorten the maintenance, repair time for generating sets; as well as strengthen the implementation of solutions of energy saving, reasonable and effective use of electrical energy sources.
b. Oil and Gas sector:
In the 1st quarter and the early April, the oil and gas exploration, exploitation and processing work is stable and relatively grows. The search and exploration activities are developed actively, the drilling progress at exploiting/assessing wells to ensure the monthly working plan.
c. Steel sector:
The production steel of kinds in the 1st quarter reached about 1.469 million tons, rising by 4.8% year on year. Up to March 01, 2012, the stock index of the steel, iron manufacturing sector raised 59.1%, caused by the narrowed steel market when implementing the policy for investment reduction, public debt reduction, and the real property market has not had a recovery sign, the construction demand is not high.
The steel price over the past months has not had many changes. At present, the sale price ex works of Vietnam Steel Corporation for round steel is 16.155-17 million dong/ton, coil steel Ф 6 is from 16.15-17.1 million dong/ton.
d. Fertilizer, chemical sector:
The fertilizer yield of the 1st quarter in 2012 decreased from last year’s same period due to the quiet market demand, long lasting cold weather. The yield of chemical fertilizer accounted for 527.6 thousand tons, down 9.2%; NPK fertilizer reduced 8.9%; chemical paint reached 67.9 thousand tons, down 9.8%. Urea fertilizer import decreased 64.7% because Ca Mau Fertilizer Plant has officially put into production since January 2012.
The sale price of many types of fertilizer tends to increase again because it is about to enter summer-autumn rice production crop, as well as it is caused by the increased petroleum and oil price resulting in highly increased production and transport expenses. Currently, Phu My Urea fertilizer price is 10,200-10,400 dong/kg, the price of NPK fertilizer 20-20-15 is 14,800-16,000 dong/kg.
e. Textile, garment and leather shoes sector:
In the 1st quarter of 2012, cloth weaved from cotton yard reached 65.2 million m2, increasing by 16,7%; shoes, slipper, leatherette boot for adults got 13.9 million of pairs, up 15.7%; sports shoes achieved 73 million of pairs, decreasing by 4.1%.
Some textile and garment markets tend to be down because the textile and garment export market to EU countries reduced 25-30% over the same period of 2011, EU importers gradually changes orders from Vietnam to Cambodia, Laos to prevent the import tax rate of 10%; on the other hand, the domestic consumption demand was down.
f. Paper sector:
In the 1st quarter of 2012, paper and cover product of kinds gained 441.9 thousand tons, reducing by 1% over the same period last year. The domestic paper sector encountered severe competitiveness with imported paper products. The competitive capacity significantly depends on factors such as paper powder, chemicals; mainly domestic production enterprises have not taken the initiative in paper powder materials.
4. Export, import:
- Export:
Export revenue in April was estimated at USD8.6 billion, decreasing by 9.3% month on month, the main cause is due to decreased export revenue of industrial products such as fossil coal, crude oil, petroleum and oil of kinds, rubber, plastic products, etc.
Export revenue in the first four months of 2012 was estimated to reach USD33.4 billion, increasing by 22.1% as against the same period last year; of which: the export of foreign invested enterprises (excluding crude oil) was at an estimate of USD18.29 billion, up 44%.
The export situation of some main industrial articles against the same period a year earlier is as below: crude oil was estimated to reach 2.4 million tons, down 14.7% in volume and 3% in turnover; fossil coal achieved 4.3 million ton, reducing by 5.5% in volume and 12.3% in turnover; petroleum and oil of kinds were estimated at 763 thousand tons and increased 13.3% in turnover; chemical products were at an estimate of USD112 million, down 36.4%; plastic products were estimated to reach USD499 million, up 25.7%; textile and garment products gained USD4.4 billion, rising by 14.7%; shoes and slipper products accounted for USD1.97 billion, up 9.3%; electronic, computer and accessory articles gained USD2.14 billion, increasing by 98.6%; handbag, suitcase, hat and umbrella accounted for USD455 million, up 18.2%; machinery, equipment and spare part got USD1.65 billion, rising by 58.2%; steel and iron gained 542 thousand tons, reducing by 13% in volume and 16.4% in turnover; steel products achieved USD438 million, up 47% year on year.
Therefore, some processed industrial commodities such as chemicals, plastics, iron and steel decrease but key products such as textile, garment, leather shoes, electronics, machinery, equipment and spare part, steel product relatively increased, playing an important role in growing export turnover
- Import:
Import revenue in April was at an estimate of USD9 billion, an increase equivalent to that of March 3, 2012. Generally, in the first four months of 2012, the total import revenue was estimated to gain USD33,58 billion, up 4.4% as against the same period of 2011; of which, the import revenue of foreign invested enterprises was estimated at USD17.4 billion, representing a year-on-year increase of 25.9%.
The import situation of some industrial commodities mainly includes: petroleum and oil of kinds gained 2.74 million tons, down 33.6% in volume and 21.9% in turnover; Liquefied Petroleum Gas accounted for 137 thousand tons, reducing by 51.1% in volume and 44.6% in turnover; fertilizer of kinds got 838 thousand tons, decreasing by 35.1% in volume and 22.4% in turnover (of which: ure fertilizer attained 74 thousand tons, down 73.1% in volume and 70.9% in turnover because Ca Mau Fertilizer Plant has put into production); iron and steel of kinds accounted for 2,5 million tons, increasing by 5.7% in volume and 2.9% in turnover (of which steel billet is estimated to reach 137 thousand tons, reducing by 66.7% in volume); wholly-imported automobile reached 9,117 thousand tons, reducing by 57.6% in volume; automobile’s spare part achieved USD514 million, decreasing by 20.3%; wholly-imported motorbikes got over 14,613 thousand, down 46.4% in volume; paper of kinds reached 368 thousand tons, increasing by 7.6% in volume; machinery, equipment and spare part accounted for USD4.6 billion, reducing by 0.8% in turnover; materials and ancillary materials of textile, garment and leather shoes sector gained USD945 million, up 2.7% in turnover from lastyear’s same period.
Trade deficit recorded in the first four months of the year was USD0.18 billion, equaling 0.5% of the total export turnover. This level has met requirements about gradually increased trade deficit, however, possibly because of decreased production, the material import decreased, or the import demand of consumer goods reduced.
Assessing the import situation of industrial commodities showed that many commodities decreased such as petroleum and oil, liquefied petroleum gas, fertilizer, steel billet when domestic markets decreased and partly because domestic enterprises which have manufactured, meet a portion of demand of these commodities; both wholly-imported automobile and automobile’s, motorbike’s spare part reduced which was a sign indicating declined consumption (partly due to policies of proposal for fee and charge increase when participating in traffic, the regular traffic jam in Hanoi and Ho Chi Minh Cities affect consumers’ psychology).
5. Situations and results of implementing Resolution No.01/NQ-CP dated January 03, 2012:
Implementing Resolution No.01/NQ-CP promulgated by the Government, the Ministry of Industry and Trade has promulgated the Action Plan of the Ministry of Industry and Trade together with Decision No.433/QD-BCT dated January 18, 2012 and Directive No.04/CT-BCT dated February 22, 2012 to deploy the implementation of the Resolution.
About contents of the results of implementing Resolution No.01/NQ-CP by the Ministry of Industry and Trade, units are requested to refer to the contents of Official Letter No.2814/BCT-KH dated April 04, 2012 by the Ministry of Industry and Trade reporting the implementation of Resolution No.01/NQ-CP by the Government (this Official Letter has been printed, copied and sent to the Department by the Ministry’s Office).
On the other hand, implementing Resolution No.01/NQ-CP dated January 03, 2012 regarding main resolutions in guiding and managing the implementation of socio-economic plan and state budget cost estimate in 2012, as well as the implementation of diminishing 5-10% of management cost, reducing product costs of economic groups, some economic groups have been committed to reduce as below: the Electricity of Vietnam cuts down VND1,800 billion; Vietnam National Oil and Gas Group cuts down VND3,715 billion; Vietnam National Coal, Mineral Industries Group cuts down VND986 billion; Vietnam National Textile and Garment Group cuts down VND178.6 billion.
6. Solutions, proposals:
- To continue to strictly supervise the progress of investment projects, the disbursement progress of projects. Projects financed in 2012 (including the state budget and the government bond) should promptly be implemented upon the progress in order to ensure the investment demand of urgent projects to be completed in 2012 and prepare for coming years;
- To implement the Project on restructuring state-owned enterprises; strengthening management with a view to improving the efficiency of state-owned enterprises;
- Enterprises should exploit, on a maximum basis, the production capacity and market demand in order to meet indispensable products of the economy such as garment products, shoes and slipper, milk, vegetable oil, etc and export products such as crude il, garment products, shoes and slipper, mechanicals, electric wire and cable, etc;
- To continue to promote technology improvement, enhance the management, research of using domestically manufactured materials, machines and equipments, as well as drastically implement national target programmes on using energy economically, effectively to reduce expenses, product costs to strengthen the efficiency of investment, production and business;
- To continue to provide the policy to reduce lending rate to encourage investment, production and business enterprises meeting the demands of domestic markets and export./.
Ministry of Planning and Investment