Overcoming Difficulties In Production And Business Recovery
The city's industrial production in August has improved, with the IIP industrial production index estimated to increase by 26.43% over the previous month and by 15.69% over the same period last year. However, the difficult economic situation is affecting production and business results. In particular, the sharp decline in purchasing power and rising commodity prices are still impacting the growth of businesses.
The IIP industrial production index decreased continuously in April and May and showed signs of slowing down in the following months. Over half of the city's level-4 industries are expected to reduce production output or increase slightly over the same period. The estimations are the lowest result in the last five years due to the decrease in market demand and export orders and the continuous power cuts in the past months.
According to the Vietnam Association of Seafood Exporters and Producers, in August 2023, seafood export turnover is estimated to reach 846 million USD, an increase of more than 15% over the same period last year, and sales are much higher than in previous months. However, this is the lowest negative growth rate in the past six months. Many seafood enterprises are in the situation of reducing export output by over 50%.
Despite many advantages Vietnam gets from the 16 free trade agreements, the sharp reduction in purchasing power and mounting prices of raw materials still have an immense impact on the export output./.