Industrial production encountered difficulties, many indicators decreased

The industrial consumption index decreased, and the inventory index in March increased

Specifically, the People’s Committee of Vinh Phuc province said that in the first quarter of 2024, industrial production activities in the area will take place in the context that the socio-economic situation of the province and the whole country continues to face many difficulties, Challenges – Rising prices of raw materials and raw materials increase production and transportation costs, creating pressure on inflation control.

Lending interest rates have decreased but not commensurate with the decrease in deposit interest rates; Demand for our country’s large, traditional export markets continues to decline…

In Vinh Phuc province, the index of industrial production (IIP) in March 2024 increased by 25.73% over the previous month, but decreased by 3.16% over the same period last year. Compared to the same period, the mining industry increased by 25.59%, but in fact this is not the main industry of Vinh Phuc province.

Meanwhile, the processing and manufacturing industry will decrease by 3.17% over the same period in 2023; Production and distribution of electricity, gas, hot water, steam and air conditioning increased by 4.68%; The water supply industry, waste management and treatment activities, and wastewater decreased by 7.84%.

In the first quarter of 2024, it is estimated that the production index of the entire industrial sector increased by 6.67% over the same period last year, while the consumption index of the processing and manufacturing industry decreased by 4.63% and the inventory index decreased by 4.63%. March inventory increased by 9.19%, showing that industrial production activities of Vinh Phuc province are still facing many difficulties and challenges.

Production output of cars and motorbikes decreased

The production output of many key industrial products of Vinh Phuc province in the first quarter of 2024 also shows signs of a sharp decrease, specifically: automobile output is estimated to reach 6,735 thousand vehicles, down 22.75% compared to the previous year. in the same period last year. This is a manufacturing industry that is heavily influenced by the domestic and foreign economy.

According to the People’s Committee of Vinh Phuc province, the automobile product consumption market in the first quarter of 2024 is less exciting, mainly due to economic difficulties and declining income, so people limit purchasing valuable assets. big; Along with the Government’s 50% registration fee support policy, which has expired from January 1, 2024, it is also the reason why people limit buying cars during this time.

The market’s purchasing power is low while the vehicle inventory is still high, so businesses in the industry such as Toyota and Honda have had to reduce output to balance production and market demand. Industry Production Index The industry’s industrial output in March and the first quarter of 2024 decreased quite deeply compared to the same period in 2023.

Motorcycle output is estimated at 371,000 vehicles, down 2.87%; During the period, to stimulate consumer demand, increase purchasing power, boost vehicle consumption and increase sales, businesses in the industry continued to launch many new car models with modern designs and advanced technology. Advance with many incentive programs and discounts (registration fee support, vouchers, gifts…).

However, because the motorbike market in our country is currently at the saturation point while a part of the people switch to using cars or electric vehicles to replace vehicles using internal combustion engines, purchasing power is low, Demand for motorbike products also decreased.

A good sign is that electronic component manufacturing service revenue in the first quarter of 2024 is estimated to reach 17.8 trillion, up 13.49% over the same period in 2023; In the first quarter of 2024, a number of businesses in the industry have moved production stages from factories in Korea and China to Vietnam to increase the localization rate and minimize production costs. export.

In addition, a number of major technology companies have introduced new smartphone and tablet product lines to the market with many changes in hardware and software design, attracting the attention of a large number of people. consumption.

Thanks to that, electronic manufacturing and support businesses in the province have received more orders, contributing to stabilizing jobs for workers, developing production activities, increasing revenue and maintaining growth for the province’s key economic sector.

To strive to achieve the set 2024 socio-economic goals, the People’s Committee of Vinh Phuc province requests that departments, branches, branches, and People’s Committees of districts and cities focus on fiercely implementing key tasks in the second quarter/ 2024 – Urging to speed up the progress of compensation for site clearance and investment in infrastructure construction for industrial parks already in operation and new industrial parks with decisions to establish.

Closely monitor infrastructure investors in terms of capacity and commitment to project implementation, then take remedial measures, resolutely withdraw or seek new investors qualified to continue implementing the project or Adjust planning to reduce industrial park area.

Organize and implement policy mechanisms to support investment in building technical infrastructure of industrial clusters for the period 2022-2026; Implement the Resolution on in-depth industrial development, improving productivity and product quality by 2030 and the Regulation on industrial cluster management.