Industrial production in HCMC falls 13% in January

                                                                 Photo: vir.com.vn

Monthly decline put down to rising production during December in preparation for Tet holiday.

Ho Chi Minh City’s Industrial Development Index fell 13.06 per cent in January compared to December, according to the city’s industry development report for the first month of the year.

Its Industrial Development Index was up 3.82 per cent against January 2016, however, while processing and manufacturing was estimated to have increased 3.45 per cent.

The reason behind the monthly decline is that manufacturing increased sharply in December for the Tet (lunar new year) holiday.

Four main industry sectors were down 10 per cent month-on-month but increased 4.3 per cent compared to January 2016. Mechanical manufacturing is estimated to have increased 3 per cent year-on-year.

Vehicle production, especially the production of automobiles, is forecast by leaders of Ho Chi Minh City to grow in 2017, led by two automobile manufacturing enterprises: the Vinh Phat Motor Company, with 9,000 units, and the Daehan Motor Company, with 10,000 units.

Food processing is estimated to have increased 2.88 per cent compared to January 2016. Methods to control food origin make production costs higher but contributes to improving product quality.

Pharmaceuticals, rubber and plastics are estimated to have fallen 2.5 per cent while electricity increased 15 per cent.

Manufacturing technology and computer assembly have grown to meet demand.

The report also noted that the result is stable compared to January 2016.

by Hai Van / VET