Cars, diameters and beer are the three industrial commodities that witnessed the sharpest decline in production in the first 6 months due to the influence of COVID-19 globally and changes in government policies.
Domestic industrial production was heavily affected in the second quarter due to the influence of COVID-19, the value added growth rate was only 0.74% over the same period, figures from the General Statistics Office (GSO) . For the first 6 months, the value added of industry increased by 2.71%; in which, manufacturing and processing industry only increased by 4.96%, the lowest increase in the first half of the year (since 2011).
But the General Statistics Office also noted that, due to the early epidemic control in the country, the sectors of the economy are entering a state of normal operation again, industrial production has prospered and gradually taken away. High growth momentum from May 2020.
COVID-19 epidemic outbreaks in many countries affect the source of imported raw materials for industrial production, especially the processing and manufacturing industries. Besides, Decree 100 changes people’s drinking and beer habits, thereby affecting the beverage industry.
Among secondary industries, many industries saw a sharp drop in production index after the first half of the year, including motor vehicles -16.4%; natural gas – 11.3%; beverage production -8.8%; motorcycle production -8.4%
On the other side, industries with high production indexes include: medicine, pharmaceutical chemistry and medicine manufacturing + 27.9%; production of coke coal and refined petroleum + 15%; metal ore mining + 13.3%; manufacture of electronic products, computers and optical products + 9.8%; paper and paper products + 9.1%; chemical production and chemical products + 7.8%; tobacco product production +7.2%
Main industrial products sharply reduced production output: cars -26.6%; -23.7% diameter; beer -17.4%; crude oil extraction -13.9%; textiles made from artificial fibers -13%; iron, crude steel -10.2%; gaseous natural gas -9.1%; mobile phone -8.5%; LPG – 8.1%; casual clothes -6.9%; motorbike -6.4%; leather shoes and sandals -4.6%; fodder -4%
Inventory index of the whole manufacturing industry estimated at June 30, 2020 increased by 26.7% over the same period last year (the same period in 2019 increased by 16.1%), showing that cargo retention due to weak demand.
Sectors with high inventory indexes include: manufacturing of electronic products, computers and optical products + 156.2%; production of motor vehicles + 129.6%; coke production, refined petroleum products + 61.9%; manufacturing products from precast metal + 39.5%; costume production + 39.4%; rubber and plastic products + 38.9%; chemical production and chemical products + 38.4%; metal production + 35.7%; tobacco production + 33.7%; food production and processing + 29.4%; weaving +28.1%
Graphics: Justin Bui – Data: GSO