While Hanoi’s index of industrial production (IIP) in August suffered a decline of 8% against the previous month due to serious Covid-19 situation and restriction measures, industrial production in the city has remained positive for the eight-month period with an annualized growth rate of 6.3%.
|Garment production at Phung Xa, My Duc District, Hanoi. Photo: Thanh Hai|
“Most enterprises and manufacturing facilities have been trying to maintain operation by adopting the 3-on site principles, or taking a break between working shifts to avoid risks of infection,” noted the municipal Statistics Office in a monthly report.
During the eight-month period, manufacturing and processing, accounting for 96.5% of total production value in Hanoi’s industry sector, expanded by 6.3%; followed by production and distribution of electricity (7.1%); sewage treatment and water collection (6.3%); and mining industry (5.5%).
Subsectors that increased sharply due to growing demand during the eight-month period include motorized vehicle production (up 21.6% year-on-year); garment (18.2%); beverage (16.1%); wood and wooden products (10.9%); paper production (10.5%); and computers and optical products (8%).
Given the positive growth of industrial production, the number of laborforce in industrial companies in eight months also went up 0.4% year-on-year.
At a time when Hanoi is adopting social distancing measures, a total of 70 industrial parks, home to 4,169 enterprises and 62,000 workers, are still operational.
The report noted as of August 20, 1,077 large-scale enterprises have had their anti-Covid-19 plans approved by local authorities.
Meanwhile, business households and small-scale enterprises have signed commitments with the city on their compliance to restriction measures to keep business running.
In August, Hanoi’s authorities approved investment licenses for 12 foreign-financed projects with a combined registered capital of US$17.6 million. In the eight-month period, Hanoi has attracted a total of $841.8 million in foreign direct investment.
The city is currently second nationwide in terms of attracting new FDI projects, accounting for 21.5% of the total, only behind Ho Chi Minh City which makes up 34%.