Meeting on the City’s Index of Industrial Production (IIP) in the early 6 months of 2022

On the afternoon of June 23^rd, Hai Phong City’s Government held a meeting to discuss about the city’s IIP performance in the first six months of 2022, causes, and measures to improve the city’s IIP in the next 6 months of the year. Chairman of the City People’s Committee chaired the meeting under the direction of Secretary of the City Party’s Committee, with participation of related departments (including the Trade and Industry Department, the City’s Economic Zone Authority, Planning and Investment Department, the City’s Statistics Department, and the City’s Customs Department) and representatives of enterprises, particularly those that have made a significant contribution to the city’s economic growth index.

The Trade and Commerce Department reported the City’s IIP performance in the early six months of 2022. Photo: Department of Foreign Affairs.

At the meeting, the Department of Trade and Industry reported the situation of industrial production in the city in the first six months of 2022; the city’s IIP index reached 11.84% and was lower than the same period in 2021, 2020 and 2019. Indeed, according to the report, in the difficult context of the country and the world, the City has been facing challenges. In the first six months of 2022, the City’s IIP gained 11.84%, of which industries such as electrical appliances or rubber production continuing to grow while others such as cable manufacturing or batteries production have decreased. Reasons explaining the aforementioned facts were identified. First of all, impacts of the COVID-19 pandemic have affected all economic and social sectors of the city, including industrial performance. Problems related to labor shortage, production scale reduction due to social distance, lack of input materials… required enterprises and the City’s government to have solutions. In addition, the global supply chain has been disrupted which has led to increased manufacturing costs, pressure on production activities that have partially impacted the City’s IIP performance. Production expanding projects of LGD, LGE companies have not yet come into operation as scheduled; Pegatron and Flat Joint Stock Companies have been gradually put into operation. Another fact is that turning to normal has taken place in many localities and a number of orders have been moved to other cities and provinces that contributed to the reduction the City’s IIP in the first six months of 2022.

Prediction and measures on the City’s IIP performance in the later six months of 2022 was mentioned at the meeting. Photo: Department of Foreign Affairs

Besides numerous activities to support enterprises tackle difficulties, the City’s government and relevant departments have implemented diverse policies and measures for trade and investment promotion, and informing free trade agreements which were signed by Vietnam and started to be in validity. Other supportive activities including accelerating construction of industrial clusters’ facilities, social accommodation campuses for labors, connecting demands and supplies, developing e-commerce, reviewing and continuing facilitating administrative procedures, working closely with enterprises in labor recruitment, particularly high-skilled workers, etc. have been made.

At the meeting, representatives of companies, ranging from industrial facilities suppliers to manufacturing companies shared their comments, concerns, and suggestions with the City’s government. In fact, difficulties related to labor supply, social housing, input materials for production, taxes were discussed by the City and the participating companies and already got the attention of the City for further consideration and solutions on time./.