Industrial production value increases by 6.6% in the first quarter of 2009

    The production value of the central state-owned enterprises is estimated at VND1,820.2 billion, down 6.1% over the same period, accounting for 18.9% of the  2009 plan. Due to the impact of the global economic recession, orders have been cut, which leads to a considerable decline in exports; for example, Bien Hoa coffee company’s export in the first quarter of 2008 rises by 35% over the same period but is roughly equal to the value of the same period. This year’s export sales of the two timer exporters – An Binh and Long Binh – fall by 35.7%.

    The production value of the local state-owned enterprises is estimated at VND550.6 billion, up 1.1% over the same period, accounting for 16.9% of the year plan. Export sectors show a large decrease; for example, Dong Tien garment company’s export goes down by 33.4% - timber industry 22.4% - leather and shoe industry 45.2%. However, tobacco companies see a substantial increase in production and express as a great proportion of the local industry production value, which makes the production value of the local state-owned enterprises go up by 1.1% over the same period.

    Regarding non-state businesses, due to the impact of the global economic recession, the industrial production in the first quarter of 2009 encounters more difficulties than that of the previous years, which impacts most of privately-owned businesses. Nevertheless, the first quarter of 2009 sees an increase in all economic sectors and is estimated to reach nearly VND2.6 thousand billion, up 8.6% over the same period, accounting for 22.1% of the year plan. The industry making products from metals has the highest growth rate, 25.0%.

    Foreign-invested businesses’ production value reaches VND13,582 billion, up 8.4% over the same period, accounting for 20.3% compared to the year plan. 21 industries show an increase in production and one sees a fall in production over the same period.

    Of nine major industries, the processing one has the highest growth rate, 12.1% over the same period because its products are mainly consumed in domestic market, lessening the impact of the economic downturn. Three industries show a decrease in production over the same period are: paper down by 6.8%, mining and building material production 4.7% and electric - electronic 4.3%.

(Reported by Hoang Anh, Translated by Duy Minh)