Production indices face right direction for 2022 aims

The General Statistics Office (GSO) reported that in October, Vietnam’s index for industrial production (IIP) is estimated to increase 3 per cent on-month and 6.3 per cent on-year “thanks to enterprises taking the bigger initiative in labour and formulating their business and production plans, and weathering difficulties for production recovery and expansion.”

Production indices face right direction for 2022 aims, photo Le Toan

In the first 10 months of this year, the IIP climbed 9 per cent on-year – far higher than the on-year expansion of 3.8 per cent in the corresponding period last year. The manufacturing and processing sector, creating 80 per cent of industrial growth, ascended 9.6 per cent on-year – higher than the 5.1 per cent on-year rise in the same period last year.

Growing production has resulted in rising demand for electricity, fuel, and wastewater treatment as well.

The Ministry of Planning and Investment reported that the economy’s production and distribution of electricity in the first 10 months rose 7.8 per cent on-year, while the management and treatment of wastewater climbed 6.6 per cent, and mining expanded 5 per cent.

For example, state-owned Vinacomin just reported that in the first nine months of 2022, its total revenue is estimated to be $5.28 billion, up 22.2 per cent on-year. This includes an on-year rise in revenues of some key products such as coal ($3.2 billion – up 24 per cent), minerals ($806.5 million – up 44.8 per cent), electricity production and sale ($342.6 million – down 13 per cent); mechanical production ($121.3 million – up 23 per cent), industrial explosive materials ($226.5 million – up 27.5 per cent), and other products ($584.8 million – up 13 per cent).

In another case, state-run PetroVietnam freshly reported that its total revenue in the first nine months is estimated to sit at $30.36 billion, exceeding by 25 per cent as compared to the yearly plan and up 56 per cent on-year. Its total revenue from electricity sale is estimated to be $14.87 billion, up 9.04 per cent on-year. The group’s contribution to the state coffers hit $4.47 billion, surpassing by 59 per cent of the yearly plan and up 51 per cent on-year.

The group exploited 8.15 million tonnes of crude oil – exceeding by 23 per cent of the initial plan and equal to the realised volume last year.

PetroVietnam’s 9-month production of nitrate surpassed by 9 per cent as compared to the initial plan and up 7 per cent on-year. In addition, its fuel production – excluding the Nghi Son Oil Refinery and Petrochemical Plant – reached 5.16 million tonnes, up 8 per cent on-year.

Meanwhile, Electricity of Vietnam’s (EVN) also reported that all of its activities were increasing on-year in the first nine months of 2022.

Specifically, its gross output of industry is estimated to be $12.87 billion, up 7.1 per cent, while the produced and purchased electricity volume is nearly 197.91 million kWh, up 6.81 per cent; and commercial electricity totalled nearly 181.49 million kWh, up 7.1 per cent. Electricity for agro-forestry-fishery climbed 3.57 per cent, while the rate is 7.46 per cent for construction and industrial activities, 3.73 per cent for households, and 27 per cent for trade and hotels.

EVN’s total revenue from electricity sales is estimated to be $14.87 billion, up 9.04 per cent on-year.

The GSO said that business confidence have crept up over the past year. The economy witnessed 125,800 enterprises newly established so far in 2022, with total registered capital of $58.26 billion and employment for 835,000 additional people – up 34.3 per cent in the number of enterprises, 5.7 per cent in capital, and 18 per cent in labourers, all as compared to those in the same period last year.

“Production and business activities continued to recover in October, especially the service sector, which is forecasted to be more active in the last months of the year, so the number of newly registered businesses in the trade and service sector increased,” said Nguyen Thi Huong, general director of the GSO.

In October, the whole country saw more than 13,000 enterprises newly established, up 58.3 per cent over the same period last year. In the first 10 months of 2022, the total number of enterprises registered for new establishment and resuming operation reached 178,500, an on-year increase of 38.3 per cent, of which the number of businesses returning to operation increased by 49 per cent.

If the $121.74 billion worth of additional registered capital of 42,600 operational businesses is included, the total amount of additional registered capital into the economy in the first 10 months of 2022 is 181.3 billion, an on-year increase of 31.1 per cent, Huong noted.

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