Illustrative image (Photo: tapchicongthuong.vn) Hanoi (VNS/VNA) - The Industry and Trade Ministry will promote therestructuring of industrial production sectors, especially the supportindustry, due to difficulties in production during the COVID-19 pandemic.
The pandemic has caused local enterprises difficulties in production becausethey depend on imported input materials.
Deputy Minister of Industry and Trade Do Thang Hai said the ministry would focuson restructuring chains for industrial production, especially in largemanufacturing and processing industries such as textiles, footwear, electronicsand wooden processing sectors.
The restructuring would be carried out to promote sustainable cooperation withsome partners such as the Republic of Korea, Japan and India to avoiddependence on a few partners or markets as at present.
The ministry would review the situation and demand for input materials topropose production organisation plans and solutions to diversify sources of rawmaterials for production and business.
It has also proposed the Government consider approval of a resolution onsolutions promoting development of the support industry. Based on theresolution, the solutions on developing the support industry would be carriedout in all provinces and cities nationwide, reported the Ha Noi Moi newspaper.
Truong Thanh Hoai, director of the Ministry of Industry and Trade’s IndustryDepartment, said Vietnam had a low localisation rate in industries and mostlyimported raw materials and spare parts for domestic production.
Besides that, according to the ministry, Vietnam’s index of industrialproduction in the first quarter surged 5.8 percent year on year, lower than thegrowth rate of 9.2 percent in the first quarter of 2019.
Of which, the industrial production of the manufacturing and processingindustry in the first quarter of this year rose by only 7.2 percent year onyear, much lower than the growth rate of 10.9 percent in the first quarter oflast year and 15.7 percent in the first quarter of 2018.
The low growth rate was mainly due to the COVID-19 outbreak that has affectedthe supply of imported raw materials for domestic industrial production,especially in the processing and manufacturing industries.
At present, domestic garment enterprises have a shortage of raw materials forprocessing export products. Therefore, many of them have focused on producingmasks to meet high demand on the domestic market. The production has helpedthem to overcome the current difficulties due to available raw materials on thelocal market./.
The pandemic has caused local enterprises difficulties in production becausethey depend on imported input materials.
Deputy Minister of Industry and Trade Do Thang Hai said the ministry would focuson restructuring chains for industrial production, especially in largemanufacturing and processing industries such as textiles, footwear, electronicsand wooden processing sectors.
The restructuring would be carried out to promote sustainable cooperation withsome partners such as the Republic of Korea, Japan and India to avoiddependence on a few partners or markets as at present.
The ministry would review the situation and demand for input materials topropose production organisation plans and solutions to diversify sources of rawmaterials for production and business.
It has also proposed the Government consider approval of a resolution onsolutions promoting development of the support industry. Based on theresolution, the solutions on developing the support industry would be carriedout in all provinces and cities nationwide, reported the Ha Noi Moi newspaper.
Truong Thanh Hoai, director of the Ministry of Industry and Trade’s IndustryDepartment, said Vietnam had a low localisation rate in industries and mostlyimported raw materials and spare parts for domestic production.
Besides that, according to the ministry, Vietnam’s index of industrialproduction in the first quarter surged 5.8 percent year on year, lower than thegrowth rate of 9.2 percent in the first quarter of 2019.
Of which, the industrial production of the manufacturing and processingindustry in the first quarter of this year rose by only 7.2 percent year onyear, much lower than the growth rate of 10.9 percent in the first quarter oflast year and 15.7 percent in the first quarter of 2018.
The low growth rate was mainly due to the COVID-19 outbreak that has affectedthe supply of imported raw materials for domestic industrial production,especially in the processing and manufacturing industries.
At present, domestic garment enterprises have a shortage of raw materials forprocessing export products. Therefore, many of them have focused on producingmasks to meet high demand on the domestic market. The production has helpedthem to overcome the current difficulties due to available raw materials on thelocal market./.
VNA
