According to the department, the industry has shown signs of recovery and an upward trend in the context of global economic downturn, though the result is lower than the target of 16.5 per cent.

Looking back at industrial growth this year, industrial production in January was 8.6 per cent lower than that of last December and 4 per cent less compared to the same period last year.

However, in the last quarter of the year, it enjoyed month-on-month growth. This December, industrial production earned the country VND66 trillion ($3.5 billion), 4.6 higher than the previous month and 13.4 per cent higher than the December 2008 figure.

Of the country's total industrial production value, the non-State sector and foreign-invested firms ranked first in contributing to the industry with growth rates of 9.9 and 8.1 per cent against last year, respectively.

State-owned enterprises saw a lower growth rate of 3.7 per cent. The department reported that the main reason for this was the equitisation, thus making its proportion reduce compared to the overall industry.

Despite a relatively high growth rate of between 9.3 and 11.8 per cent, the mineral sector and electricity, water and gasoline production and distribution accounted for a modest proportion of around 5 per cent.

The processing industry made up 89 per cent of the industry but at a lower growth rate of 7.3 per cent.

Many of the country's key industrial products posted high production growth rates. Coal production was up 9.9 per cent and crude oil, 9.8 per cent.

Production of air-conditioners, liquid petroleum gas (LPG) and refrigerators saw impressive growth of 42, 40 and 30 per cent, respectively.

The department said the high growth rate showed a recovery trend in production and consumption.

It also said that prices of industrial products had helped industrial production and the economy. This month, the price of crude oil was $72-80 a barrel, higher than previous months, contributing to the country's export turnover and State budget.

Total export turnover of this year is estimated to reach $56.7 billion, 9.5 per cent lower than that of last year. Of that, crude oil export would reach $30 billion, a decrease of 13.4 per cent from 2008.

Import turnover of this year also saw a decline of 15 per cent with a total of $69 billion.

However, prices of imported materials used for production which include steel, fertilisers and rubber have risen, showing an increase in demand.

The high exchange rate between the US dollar and the dong has also put pressure on import businesses and prices of imported products.

Many provinces such as Quang Ninh, Thanh Hoa and Dong Nai have high growth rates ranging from 10.3 to 15.8 per cent.

Others that had a low growth rate or even a decrease early in the year have managed to turn things around.

Source: VietNamNet/Viet Nam News