Credit growth in the first 6 months of the year reached 6%, higher than the same period in the last 3 years. In June alone, credit increased by 3.59%, especially in the last 2 weeks of the month.
Manufacturing - one of the main growth drivers of the economy . 7.51% - is the growth rate of the industrial and construction sector in the first 6 months of the year, this figure is quite a breakthrough compared to the modest increase of 0.85% in the same period last year. To better understand why, it is necessary to dissect the data from the General Statistics Office more closely, to see that these are the sub-sectors that continue to be particularly prosperous in the second quarter, compared to the first quarter of this year. Including the production of rubber and plastic products, the production of beds, cabinets, tables and chairs, prefabricated metal products, food processing, beverage production, and finally, clothing. Recorded from Ho Chi Minh City.
Grasping the need for green transformation from the market, some businesses have quickly converted their products towards increasing the use of recycled materials. Such as packaging products for the export market. Thanks to that, the production of rubber and plastic products is among the fastest growing groups in the first 6 months of this year, at nearly 30%. Positively contributing to the processing and manufacturing industry.
In the first half of this year, packaging manufacturers continued to increase the proportion of products that meet the green criteria of the export market. Currently, out of every 10 products made, 4 are from recycled materials. Thanks to that, they sell for 30% more than regular products. Growth in the past 6 months exceeded 10% compared to the same period last year.
Mr. Tran Viet Anh - Chairman of the Board of Directors of Nam Thai Son Import-Export Company said: "Currently, we have been able to use domestic recycled materials. This is very suitable for the current circular economic needs. Using domestic recycled materials, we can reduce imported materials, helping to change the cost structure. This helps the price to be competitive and the added value of the product to be much higher than before".
According to some business associations, the production order situation in the first 6 months of this year has recovered and is more stable than last year. Currently, many businesses are fully booked with export orders until the end of the third quarter. Particularly in the fields of fruit and vegetable processing and plastic production, some businesses are fully booked until the end of the year.
"Some agricultural sectors and export sectors of Vietnam, especially key products, have recovered. There are countries where we export very well, such as the US. We have reduced VAT until the end of the year. All of this can completely maintain GDP growth momentum," said Mr. Huynh Phuoc Nghia - UEH University of Economics, Ho Chi Minh City.
In the second half of the year, peak consumption seasons are expected to improve domestic demand, thereby boosting production. Especially when the policy of reducing 2% of value added tax continues to apply until the end of the year, significantly reducing input costs for businesses.
"If the cost is reduced by 2%, the pressure on input materials will also be significantly reduced. When input materials are reduced, the productivity and output of the enterprise will also increase. Workers will have more jobs," said Mr. Doan Minh Tuan Anh - Head of Marketing Department, Qui Phuc Production Company Limited.
According to experts, to ensure production, businesses will need to carefully calculate the labor supply, especially skilled and highly qualified labor to meet the demand for increased product value of the manufacturing and processing industries.
The race for industrial production growth rate (IIP) in the first 6 months of this year among localities is extremely competitive. Ho Chi Minh City, as seen above, recorded a clear improvement, but still not enough to enter the top 10. The leading position is Tra Vinh with a sudden increase of 58.9%, mainly thanks to electricity production and distribution. Next are Khanh Hoa, Phu Tho, and Bac Giang. The lowest in the top 10 is Cao Bang, which also increased by 14.4%. Meanwhile, the locality with the biggest decrease in the country is Quang Ngai, which also decreased by less than 10%.
This race is expected to be even more intense, with credit growth in the first 6 months of the year reaching 6%. If we consider the credit sales supplied to the economy, the 6-month figure has reached a higher level than the same period in the last 3 years.
Credit is a resource to create momentum for economic growth. However, by the end of May, according to the State Bank, credit increased by 2.41%. Thus, in June alone, credit increased by 3.59%, higher than the growth rate of the first 5 months of the year combined, especially in the last 2 weeks of the month.
Seasonality, contract closing, or end-of-quarter disbursement are common reasons. However, this year's special feature also recorded a sharp increase in demand and the number of orders from both domestic and international sources. Thus, this credit growth should not only be viewed as an explanation for the growth of the manufacturing and processing industry in the first 6 months of the year, but more than that, it predicts a continued strong growth trend in the last 6 months of the year of the economy, especially the manufacturing and consumption sectors.
"Consumer confidence among domestic people is at a good level, and therefore consumer loans are more strongly activated. New import-export orders are piling up in the second quarter, so they must have a plan to import raw materials or purchase domestic inputs, which can lead to a sharp increase in disbursement in June," said Mr. Nguyen Quang Huy - Director of the Faculty of Finance and Banking, Nguyen Trai University.
Vietnam's Purchasing Managers' Index (PMI) for June was 54.7 points, up sharply from 50.3 in May, according to S&P Global. According to the international organization, the number of orders has set a record increase in more than 13 years.
Mr. Paulo Medas - Head of Article IV Mission, Head of the Vietnam Team, International Monetary Fund IMF said: "The gradual recovery of external demand for Vietnam's exports that has taken place since late 2023 is having a strong positive impact on the manufacturing sector. Global trade is really accelerating, so the number of orders will flow to Vietnam in large numbers."
"Businesses are ramping up production and purchasing as they see new orders picking up. And most importantly, they are also starting to increase their staff numbers to meet production needs," said Andrea Coppola, World Bank Lead Economist for Vietnam.
The synchronization of growth in both supply and demand in the manufacturing and processing sector will create momentum for the economy to accelerate in the coming period. At the regular meeting in June and the recent online conference between the Government and localities, delegates assessed that in the context of many difficulties in the world and in the country, the Government and the Prime Minister have directed strongly, with focus and key points, helping our country's economy achieve many important results in the first 6 months, which are highly appreciated by businesses and international organizations. Typically, comments from ADB, Standard Chartered, HSBC. Or as the IMF assessed, Vietnam is the only Southeast Asian representative in the top 10 with a growth forecast of 6.4% for the next 5 years.
According to VTV
Source: https://doanhnghiepvn.vn/kinh-te/tang-gia-tri-san-pham-thuc-day-che-bien-che-tao/20240710042200304
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