Hanoi’s Index of Industrial Production (IIP) in July has grown 1% month-on-month and 7.8% year-on-year, according to the municipal Statistics Office.
| Production at Huyndai Thanh Cong Vietnam. Photo: Thanh Hai |
This resulted in an IIP expansion of 8.5% for the January-July period, a positive rate despite current difficulties due to the ongoing fourth outbreak in the city.
Vietnam’s IIP, however, rose only 1.8% in July, the slowest growth rate since January, for which social distancing measures in southern provinces’ major production hub have been the key factor.
“Amid severe Covid-19 situation, Hanoi has adopted urgent restriction measures against Covid-19, especially plans to prevent potential infections in industrial parks and clusters to maintain operation,” noted the statistics agency.
In the seven-month period, manufacturing and processing, accounting for 96.5% of total production value in Hanoi’s industry sector, expanded by 7.9%; followed by production and distribution of electricity (7%); sewage treatment and water collection (4.3%); and mining industry (2%).
Subsectors that increased sharply due to growing demand during the seven-month period include motorized vehicle production (up 22.6% year-on-year); garment (22%); beverage (17.4%); wood and wooden products (15.2%); paper production (15%); chemical products (13%); computers and optical products (11%).
With the high growth of industrial production, the number of labor-force in industrial companies as of late July also went up 0.6% year-on-year.
Public investment acceleration
For the first seven months of this year, Hanoi disbursed VND24 trillion ($1 billion) in public investment, up 8.4% year-on-year and equivalent to 47% of the year’s target.
| Elevated ring road No.2 section Vinh Tuy bridge – Nga Tu So. Photo: The Hanoi Times |
In addition to restrictive measures against the Covid-19 that are hindering construction activities, slow progress in site clearance, resettlement of affected households and limited capabilities of contractors have also been factors slowing the disbursement.
The city’s leaders have also urged local authorities to stay active in supporting contractors and addressing issues during the construction progress.
A number of major infrastructure projects in Hanoi: Hanoi’s urban railway project, section Nhon – Hanoi Station with investment capital VND32.9 trillion ($1.43 billion). The progress so far has reached 72.5% and is scheduled to become operational by late 2021. Elevated ring road No.2 section Vinh Tuy bridge – Nga Tu So ($410 million): contractors have fulfilled 70% of the work volume and are set to complete the whole construction in the coming months. Vinh Tuy Bridge phase 2 ($109 million) with a total length of 3.4 kilometers and is expected to finish construction ahead of the original schedule by late 2022. Ring road 3.5 section Thang Long Highway to National Highway No.32 ($43.5 million) with a length of 5.6 kilometers, targeted to complete in 2021. Soc Son waste-to-energy plant ($305 million) is the largest of its kind in Vietnam with the capacity of processing 4,000 tons of waste. The plant is set to be put into operation next September. |
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