A mechanical component manufacturing factory in HCM City. — VNA/VNS Thanh Vũ

HCM CITY — With industrial production recovering month after month HCM City enterprises are confidently resuming investment and restoring production, especially of key industrial products, according to the city Department of Industry and Trade.

The index of industrial production (IIP) went up by 9.7 per cent year-on-year in the first four months of the year, a positive signal at a time when the global economy has been hit by the COVID-19 outbreak, it said.

Bùi Tá Hoàng Vũ, the department’s director, said in April the IIP increased by 3.3 per cent from the preceding month, with manufacturing growing by 2.8 per cent and electricity production and distribution by 25.6 per cent.

A report from the city Statistics Office showed that production in the city’s four key sectors increased by 11.7 per cent year-on-year in April, with electronics output up by 27.7 per cent, mechanical engineering by 17.5 per cent, food and beverages by 7.4 per cent, and pharmaceutical chemicals by 2.4 per cent.

Of tier-2 industrial sectors, 24 out of 30 expanded in April, with wood, bamboo and rattan processing and electrical equipment manufacturing sectors achieving robust growth, it said.

But traditional sectors saw a decline of 4.4 per cent, with leather and leather-based products down by 3.2 per cent and garment production by 12.6 per cent.

The consumption index for the processing and manufacturing sectors increased by 11.9 per cent.

The stockpile index came down for a number of sectors, including by 33.3 per cent for coke and refined petroleum products, 19.7 per cent for motor vehicle manufacturing, and 11.8 per cent for other metal products.

Despite the pandemic and closed borders, the city’s exports managed to grow.

The Statistics Office said the city’s trade increased by 21.3 per cent, as exports rose by 13.9 per cent and imports by 27.7 per cent.

Foreign direct investment is a major driver of import-export growth.

China remained the largest export market for HCM City’s enterprises, buying over US$3.5 billion worth of goods, up 11 per cent, followed by the US, Hong Kong, Japan, and the EU.

Retail sales, services recover

Sales of retail products and services in the first four months of 2021 in HCM City rose by nearly 8 per cent year-on-year.

Revenues from them were worth VNĐ366.2 trillion (US$15.85 billion)

In April alone growth was 23.3 per cent year-on-year.

April saw a large number of promotions during the Hùng Kings Memorial Festival (April 21), Reunification Day (April 30) and International Labour Day (May 1), which boosted sales.

With the retail market recovering, many businesses, especially foodstuff and consumer goods companies such as Masan and Kido, saw revenues grow sharply in the first quarter compared to the same period last year.

Companies are now stabilising their production chains and cutting costs besides offering promotions to attract customers and stimulate demand.

The country’s retail products and services sales for the period were worth nearly VNĐ1.7 quadrillion, a 10 per cent increase year-on-year.

Retail sales accounted for nearly 80 per cent of it. — VNS