The non-State owned sector saw the highest growth, at 22.2 per cent, followed by the foreign-invested sector with 17.3 per cent and the State-owned sector with a spare 6.7 per cent.

Output of many key industrial products was up over the same period last year. Vans increased 96.2 per cent to reach 24,200 units, passenger vehicles 78.6 per cent to 39,600 units, and washing machines surged 54.2 per cent to 338,800 units. Other increases included: TVs (34.4 per cent), refrigerators (27 per cent), powdered milk (36.6 per cent), soap (25.5 per cent) and seafood processing (20.8 per cent).

Some other industrial products saw modest growth during the period: electricity rose 13.8 per cent to 42.7 billion kWh, cement 11.8 per cent to 20.8 million tonnes, fertiliser 4.9 per cent to 1.43 million tonnes, and rolled steel by 4.7 per cent to 2.27 million tonnes.

Other industrial products posted a decrease, with crude oil down 6 per cent to 8.56 million tonnes and natural gas down 0.2 per cent to 4.34 billion cu.m.

In the first seven months of the year, the value of high-scale industrial production in provinces like Vinh Phuc, Ha Tay, Binh Duong, Hai Duong and Hai Phong City saw high growth, ranging between 18.2 to 30.9 per cent year-on-year.

Economic hubs Ha Noi and HCM City showed minimal increases of 14.7 and 13 per cent respectively, lower than the common industrial output growth of 16.4 per cent.

Slow month

Most overall industrial figures in the first seven months of the year were up, but those in July fell a minimal 1 per cent against June in every sector.

Commenting on this issue, GSO official Quang Ha said, "Prices of input production materials are still climbing, which makes production and consumption more difficult. Enterprises must therefore slow production".

The consumer price index (CPI) in July increased by only 1.13 per cent over the previous month, the lowest rise since early this year, but the CPI in the first seven months of year was up 21.28 per cent year-on-year, which enterprises consider to be a high rate.

Common lending interest rates range from 20 to 21 per cent a year, making it expensive for producers to get bank loans.

Many are worried that production for the rest of the year will suffer as the 31 per cent rise on petrol and oil retail prices will likely impact the CPI and potentially derail Government efforts to curb inflation.

The Ministry of Industry and Trade has set a target of VND674 trillion ($42.12 billion) for the country’s industrial output this year, focusing on the development of competitive products with high added value from sectors including agriculture, forestry and fisheries.

Meanwhile, the total trade deficit in the first seven months hit $15 billion, up 37 per cent from last year. Imports in the first seven months totalled $51.9 billion, up 56.8 per cent year-on-year, while exports rose 37.7 per cent to $36.9 billion.

Source: VNS