Vietnam’s engineering and manufacturing industry in the first nine months of 2022 increased by 10.69%. The average income of workers in this industry also reached 7.4 million VND – an increase of 14% compared to the first 9 months of 2021. The processing and manufacturing industry continues to be expected to be a bright spot, leading the whole Vietnam economy. 

The processing and manufacturing industry continues to be the bright spot of the economy

Impressive numbers

In recent years, the processing and manufacturing industry in the locality has experienced strong growth.

In Quang Ninh, up to now, there are 97 manufacturing industry projects, with registered investment capital of approximately VND 89 trillion. The total area for implementation of engineering and manufacturing industry projects is 649.5 ha. In the first nine months of 2022, the structure of the processing and manufacturing industry in Quang Ninh reached 12.3%, up 0.4% compared to 2021 and 2.5% compared to 2020.

In Vinh Phuc province, the index of industrial production (IIP) increased by 15.06% over the same period, the highest since 2019. Industrial production activities in the area recovered to the level before the time of the COVID-19 epidemic. The processing and manufacturing industry increased the highest with 15.22%.

According to the General Statistics Office, the industry and construction sector in the first nine months of 2022 reached 9.63% over the same period last year, contributing 3.25 percentage points to the growth rate of total value added. more of the whole economy. In particular, the processing and manufacturing industry is the growth engine of the whole economy.

Accordingly, the processing and manufacturing industry in the first quarter increased by 7.85%; the second quarter increased by 11.07%; the third quarter increased by 13.02%. Generally in the first 9 months of the year, the processing and manufacturing industry increased by 10.69%, only lower than the growth rate of the same period in 2011, 2017, and 2018, contributing 2.74 percentage points.

The report of the General Statistics Office also showed that the consumption index of the whole processing and manufacturing industry in September 2022 increased by 2.3% compared to the previous month and increased by 8.8% over the same period last year. In the first nine months of 2022, the consumption index of the entire processing and manufacturing industry increased by 9.7% over the same period in 2021.

The bright spot of the processing and manufacturing industry is also seen through the income of workers.

Mr. Pham Hoai Nam, Director of the Department of Population and Labor Statistics (General Statistics Office) said that the income of Vietnamese workers in the first 9 months of the year had a strong recovery.

Specifically, the average income of employees reached VND 6.6 million, an increase of 12.7% compared to the first 9 months of 2021. The most prominent are workers in the processing and manufacturing industry with income levels. The average is 7.4 million VND, an increase of 14% compared to the first 9 months of 2021 and 11.9% of the first 9 months of 2020.

Enterprises expectation

With the achieved results, enterprises in the processing and manufacturing industry continue to expect growth.

According to the survey results on business trends of enterprises in the processing and manufacturing industries, 38.6% of enterprises rated better than in the second quarter of 2022; 36% of enterprises said that the production and business situation was stable and only 25.4% of enterprises rated it as having difficulties.

It is expected that in the fourth quarter of 2022, the survey results show that 48.7% of businesses think the trend will be better compared to the third quarter of 2022; 33.9% of enterprises think that the production and business situation will be stable and 17.4% of enterprises forecast more difficulties. The non-state enterprise sector is the most optimistic with 83.6% of enterprises forecasting the production and business situation in the fourth quarter of 2022 to be better and stable compared to the third quarter of 2022; this rate in foreign-invested enterprises and state-owned enterprises is 80.9% and 79.1%, respectively.

Regarding production volume, 39.1% of enterprises assessed that the production volume of enterprises in the third quarter of 2022 increased compared to the second quarter of 2022; 35.3% of enterprises think that it is stable and 25.6% of enterprises think that the production volume is reduced.

However, besides the advantages, processing and manufacturing enterprises still need to be cautious in the last months of the year.

Mr. Le Trung Hieu – Deputy General Director of the General Statistics Office – said that besides the positive results achieved in the past 9 months, entering the fourth quarter of 2022, our country’s economy – society continues to face many difficulties and challenges, especially Vietnam’s economy have a large openness, affected by many aspects of the complicated and unpredictable world political situation, the world economy’s slow growth, and the rising essential goods, and high inflation globally.

Although the COVID-19 pandemic has been controlled in Vietnam, there is still a potential risk because new variants have an increased risk in the world. Therefore, among the overall solutions proposed, the General Statistics Office recommends focusing on creating favorable conditions for enterprises to operate and develop, contributing to boosting production, and business, and creating jobs to achieve the highest socio-economic development goals and targets by 2022, creating momentum for 2023.

Source: Lao dong Newspaper

MTA Hanoi is an annual trade event for the manufacturing industry in Northern Vietnam in the fields of precision mechanics, machine tools, and metalworking. With a diverse product portfolio and hundreds of leading technology products and machine tool equipment in the world, MTA Hanoi 2023 will bring the most modern and diverse solutions, machines, and production technologies in the world. for the domestic manufacturing industry. Exhibition date: 11 -13 October 2023 Opening hours: 9:00 – 17:00 daily Venue: International Center for Exhibition (I.C.E), Hoan Kiem, Hanoi, Vietnam Contact information: Tel: +84 28 3622 2588 Email: [email protected] Website: www.mtahanoi.com Facebook: facebook.com/MTAHanoi