While the ratio accounted for 42.5 per cent in 1995, it is expected to decline to 23.5 per cent this year and to 21.3 per cent in 2010, the ministry reported.

The ministry attributed the depreciation of the ratio to the high intermediate costs in production, the incompetence of processing and manufacturing sectors, the high labour intensive ratio in production, and the worsening of the exploitation sector.

In addition, national plans for the development of key economic groups have failed to meet initial targets because of their poor business expansion and the lack of co-operation between them.

Meanwhile, investment in new production technologies is still low, accounting for a mere eight to ten per cent. This, coupled with the lack of a qualified workforce in the high tech industries, also hampered the development of the national industries.

On the other hand, the increasing costs of raw materials have raised the input costs, hence lowering the value added ratio in industrial products, according to the ministry.

According to Industry and Trade Minister Vu Huy Hoang, the quality of industry performance affects development speed of the overall industry - the key role in the development of the country’s economy.

The ministry called for a number of measures to increase the ratio such as restructuring key industries, fostering the development of supporting industries and organising more training programmes for the workforce in key industries including metallurgy, core chemical and minerals.

The ministry also mentioned the need to: have favourable policies to encourage the development of new industrial products, increase manufacturing content and renew the management system.

According to the General Statistics Office, industrial production value in September fell to its lowest compared to the monthly average earlier in the year.

The figure marks only a 15.2 per cent year-on-year increase. The increase in the previous three years’ September figures were 18.1 per cent in 2007, 18.7 per cent in 2006 and 19.8 per cent in 2005.

Growth in industrial production value in the first nine months of this year reached only 16 per cent, the office said.

The figure was also the lowest compared to the last three years: 17.1 per cent in 2007, 16.8 per cent in 2006 and 16.5 per cent in 2005.
Source: Vietnamnews