Continuing the recovery momentum from the end of 2023, in the first 6 months of 2024, all 3 main sectors of the Industry and Trade sector (including industrial production, import-export and domestic market) showed very positive results, contributing positively to the growth results of the whole economy.
Industrial production index increased by 7.7%
Continuing the recovery momentum from the end of 2023 and the first months of 2024, industrial production continued to show improvement and made a positive contribution to the overall growth results of the whole economy. The added value of the entire industrial sector in the first 6 months of 2024 is estimated to increase by 7.541 TP3T over the same period last year (in the first quarter, it increased by 6.471 TP3T; in the second quarter, it increased by 8.551 TP3T); of which, the processing and manufacturing industry increased by 8.671 TP3T (in the first quarter, it increased by 7.211 TP3T; in the second quarter, it increased by 10.041 TP3T), contributing 2.14 percentage points to the total added value growth of the whole economy; the electricity production and distribution industry increased by 13.261 TP3T, contributing 0.5 percentage points; The water supply and waste and wastewater treatment industry increased by 7.131 TP3T, contributing 0.04 percentage points; the mining industry alone decreased by 7.221 TP3T, reducing the overall growth rate by 0.24 percentage points.
The Vietnam Manufacturing Purchasing Managers' Index (PMI) rose sharply to 54.7 in June, up from 50.3 in May, indicating an improvement in the health of the manufacturing sector for the third consecutive month and a significant improvement in business conditions. Growth in the manufacturing sector picked up sharply at the end of the second quarter. As a result, the Industrial Production Index (IIP) in June 2024, although estimated to increase slightly compared to the previous month (estimated to increase by 0.71% y-o-y), increased by 10.91% y-o-y. Of which, the processing and manufacturing sector is estimated to increase by 12.61% y-o-y; the electricity production and distribution sector increased by 13.71% y-o-y; the water supply, waste and wastewater management and treatment sector increased by 81% y-o-y; and the mining sector alone decreased by 7.71% y-o-y.
In the first 6 months of 2024, the industrial production index of the whole industry increased by 7.71% over the same period last year. Of which, the processing and manufacturing industry is estimated to increase by 8.51%; the electricity production and distribution industry increased by 131%; the water supply, waste and wastewater management and treatment industry increased by 6.31%; the mining industry alone decreased by 5.51%
Industrial production grew broadly with 56/63 localities having an industrial production index increasing compared to the same period last year, only 7 localities had an IIP decreasing compared to the same period last year.
The production index in the first 6 months of 2024 of some key secondary industries increased sharply compared to the same period last year, such as: production of rubber and plastic products increased by 29.01%; production of beds, cabinets, tables and chairs increased by 19.81%; production of chemicals and chemical products increased by 18.51%; production of electrical equipment increased by 17.81%; mining and ore support services increased by 17.41%; metal ore mining increased by 16.71%; production of prefabricated metal products (except machinery and equipment) increased by 13.11%; production and distribution of electricity, gas, hot water, steam and air conditioning increased by 13.01%; production of electronic products, computers and optical products increased by 8.61%; Food processing and manufacturing increased by 6.5%. On the contrary, the IIP index of some industries decreased: Crude oil and natural gas exploitation decreased by 11.7%; repair, maintenance and installation of machinery and equipment decreased by 9.2%; production of other means of transport decreased by 3.0%; production of other non-metallic mineral products decreased by 1.7%.
Import and export activities continue to flourish
With the recovery of the world market and increased export orders, import and export activities in the first half of 2024 continued to flourish and achieved positive results. The total import and export turnover of goods is estimated at 368.53 billion USD, an increase of 15.71% over the same period last year, of which exports increased by 14.51%; imports increased by 171%. The trade balance of goods had a surplus of 11.63 billion USD.
The export turnover of goods in June 2024 is estimated at 33.09 billion USD, an increase of 2.61% compared to the previous month. Of which, the domestic economic sector reached 9.33 billion USD, an increase of 3.71%; the foreign-invested sector (including crude oil) reached 23.76 billion USD, an increase of 2.11% compared to the same period last year. Compared to the same period last year, the export turnover of goods in June is estimated to increase by 10.51%, of which the domestic economic sector increased by 16.61% and the foreign-invested sector (including crude oil) increased by 8.31%
In the second quarter of 2024, export turnover is estimated to reach 97.2 billion USD, an increase of 12.51% over the same period last year and an increase of 4.61% over the first quarter of 2024.
In the first 6 months of 2024, the total export turnover of goods is estimated at 190.08 billion USD, an increase of 14.51% over the same period last year. Of which, the domestic economic sector reached 53.39 billion USD, an increase of 20.61%, accounting for 28.11% of the total export turnover; the foreign-invested sector (including crude oil) reached 136.69 billion USD, an increase of 12.31%, accounting for 71.91% of the total export turnover.
On the other hand, the import turnover of goods in June 2024 is estimated at 30.15 billion USD, down 7.91% compared to the previous month. Of which, the domestic economic sector reached 10.95 billion USD, down 8.91%; the foreign-invested sector reached 19.20 billion USD, down 7.21% compared to the same period last year. Compared to the same period last year, the import turnover of goods in June increased by 13.11%, of which the domestic economic sector increased by 15.51%; the foreign-invested sector increased by 11.81%.
In the second quarter of 2024, import turnover is estimated at 93.4 billion USD, an increase of 19.81% over the same period last year and an increase of 9.71% over the first quarter of 2024.
In the first 6 months of 2024, the total import turnover of goods is estimated at 178.45 billion USD, an increase of 171.3% over the same period last year, of which the domestic economic sector reached 65.74 billion USD, an increase of 22.31%; the foreign-invested sector reached 112.71 billion USD, an increase of 14.11% over the same period last year.
In the first 6 months of 2024, there were 33 imported items with a value of over 1 billion USD, accounting for 88.11% of total import turnover (there were 5 imported items with a value of over 5 billion USD, accounting for 50.21% of total import turnover).
In the first 6 months of 2024, the trade balance of goods is estimated to have a trade surplus of 11.63 billion USD (the same period last year had a trade surplus of 13.44 billion USD). Of which, the domestic economic sector had a trade deficit of 12.35 billion USD; the foreign-invested sector (including crude oil) had a trade surplus of 23.98 billion USD.
Stable domestic market
In June 2024, the commodity market did not have major fluctuations, demand increased for cooling goods and services. The supply of goods always met consumer demand well, prices were relatively stable, some goods had large import and export volumes to foreign markets, prices fluctuated according to world prices. This was also the peak of the summer tourist season, so commercial activities were bustling. Total retail sales of goods and consumer service revenue at current prices in June were estimated at VND 522.5 trillion, up 9.11% over the same period last year due to increased revenue from food, foodstuffs and accommodation and catering services.
In the first quarter of 2024, the market mainly focused on serving Tet, with early direction from the Government, ministries, localities and the active implementation of preparing essential goods for the market by businesses, the goods market was always stable, the supply of Tet goods well met the increasing and diverse needs of the people.
Since the second quarter, the market has focused on supplying goods for production and daily life. The supply of essential goods has always been guaranteed, prices have been relatively stable, except for pork, due to the impact of the epidemic, the supply has decreased in some periods, so prices have fluctuated. However, due to the presence of many alternative food products, pork prices have not increased dramatically, and the prices of energy fuel products have fluctuated according to world prices. In the second quarter of 2024, the total retail sales of goods and consumer service revenue at current prices is estimated at VND 1,558.4 trillion, an increase of VND 1.21 trillion over the previous quarter and an increase of VND 8.81 trillion over the same period last year.
In the first 6 months of 2024, the total retail sales of goods and consumer service revenue at current prices is estimated at VND 3,098.7 trillion, an increase of VND 8.61 trillion over the same period last year (in the same period in 2023, it increased by VND 11.31 trillion), if excluding the price factor, it increased by VND 5.71 trillion (in the same period in 2023, it increased by VND 8.81 trillion). In particular, the retail sales of goods in the first 6 months of 2024 compared to the same period last year in some localities increased sharply, such as: Quang Ninh increased by VND 9.51 trillion; Hai Phong increased by VND 9.01 trillion; Da Nang increased by VND 7.81 trillion; Can Tho increased by VND 7.61 trillion; Hanoi increased by VND 6.61 trillion; Ho Chi Minh City increased by VND 6.31 trillion.
Customs focus on synchronous and effective implementation of assigned tasks
Although the results in the first 6 months of 2024 are very positive, it is still necessary to closely monitor the situation to promptly respond because there are still potential difficulties and challenges. To complete the 2024 plan, in the coming time, the Industry and Trade sector will focus on implementing key tasks. First of all, continue to focus on synchronously and effectively implementing the tasks assigned in Resolutions 01 and 02 of the Government. At the same time, focus on implementing the Plans to implement the National Sectoral Plans in the field of mineral energy approved by the Prime Minister to encourage investment, develop key projects, and create momentum for industrial growth in the following years.
On production development: Focus on removing difficulties and obstacles, reviewing and perfecting mechanisms to develop industrial and energy production; Speed up disbursement of public investment capital, review backlogs to soon put key projects into operation; Closely monitor the electricity load situation and weather and hydrological developments to promptly respond according to scenarios proactively developed by the Ministry for each quarter and month of 2024; ensure electricity supply in all situations to serve production...
On stabilizing and developing the domestic market: Continue to accelerate the review, revision, development and completion of a number of legal documents serving state management in the domestic market sector to ensure that they are consistent with practical situations, effectively serving the management of the macro economy and the purchase, sale and exchange of goods by people and businesses.
Promote the effective implementation of the Domestic Trade Development Strategy for the period up to 2030, with a vision to 2045, and Programs and projects on domestic trade development such as: Project on Innovation in Agricultural Product Consumption Business Methods for the period 2021 - 2025 with a vision to 2030; Project on Domestic Market Development in conjunction with the Campaign "Vietnamese people prioritize using Vietnamese goods" for the period 2021-2025; Program on Trade Development in Mountainous, Remote, and Island Areas for the period 2021-2025; Program on Development of Vietnam Border Trade Infrastructure for the period 2025, with a vision to 2030, etc.
The Ministry of Industry and Trade continues to coordinate with local ministries and branches to closely monitor market developments, ensuring adequate supply of essential goods to meet people's needs, especially during peak holidays and Tet, to avoid shortages and price hikes.
Coordinate with ministries and branches in advising on price management of state-controlled goods, including petroleum products, to ensure the supply of petroleum products in the market, contributing to controlling general inflation according to the Government's target.
Coordinate with media units inside and outside the Ministry to focus on providing full information to people about the supply situation of goods... to create a stable mentality for consumers, promptly handle false information that causes psychological instability for consumers.
Coordinate the implementation of criteria and standards on commercial infrastructure (criteria on rural commercial infrastructure in the period 2021-2025; pilot market model ensuring food safety according to Vietnamese Standards (TCVN 11856) on food trading markets...).
In addition, to ensure domestic petroleum supply in the coming time, the Ministry of Industry and Trade requests petroleum traders to: Strictly implement Directive No. 01/CT-BCT dated January 2, 2024 of the Minister of Industry and Trade on the implementation of Official Dispatch No. 1437/CD-TTg dated December 30, 2023 of the Prime Minister on focusing on implementing solutions to ensure adequate petroleum supply for production, business and consumption of people and enterprises and Notice No. 01/TB-BCT dated January 3, 2024 of the Ministry of Industry and Trade announcing the Conclusion of Minister Nguyen Hong Dien at the Conference on the implementation of Official Dispatch No. 1437/CD-TTG dated December 30, 2023 of the Prime Minister; Proactively increase the import of gasoline and oil during the period of periodic maintenance of Dung Quat Oil Refinery, ensuring adequate supply of gasoline and oil for the domestic market in all situations; strictly implement the total minimum gasoline and oil source in 2024 assigned and reserve gasoline and oil according to regulations; Absolutely do not interrupt the supply of gasoline and oil in the business system (from key points, distributors, and retailers). In all situations, sufficient goods must be provided to retail stores in the distribution system of the enterprise to maintain regular sales activities; Strictly implement the reporting of import and purchase plans for gasoline and oil of oil refineries, circulation reserves, etc. during the implementation process, if there are any difficulties or problems, report to the Ministry of Industry and Trade for timely solutions.
On promoting import and export of goods: Closely monitor market developments and policy changes of partners to propose appropriate solutions, diversify traditional and new export markets. At the same time, continue to promptly inform industry associations about developments in export markets so that enterprises can promptly adjust production plans appropriately, orient to seek orders from markets; maintain regular trade promotion conferences with the Vietnamese Trade Office system abroad. Direct the Vietnamese Trade Office system in market areas to regularly update information on foreign market situations; regulations, standards, and conditions of foreign markets that may affect Vietnam's import and export activities and make recommendations to localities, associations, and import and export enterprises;
Along with that, effectively exploit Free Trade Agreements (FTAs), accelerate negotiations, sign FTAs, and establish new economic links to diversify markets, supply chains, and boost exports; Develop logistics services; support businesses to strongly shift to official exports associated with brand building; Enhance capacity on trade defense, perfect the legal system, institutions, and inter-sectoral and local coordination mechanisms; Proactively monitor and protect the legitimate interests of domestic manufacturing industries; Continue to perfect and promote early warning of foreign trade defense cases against Vietnamese export goods; Continue to promote the fight against evasion of trade defense measures and origin fraud; Strengthen information work and disseminate knowledge on trade defense for manufacturing industries and businesses.
According to Ministry of Industry and Trade of Vietnam
