Market and product

(VEN) - The Ministry of Industry and Trade's statistics show that industrial production came to VND59.65 trillion in value in February 2011, an increase of 17.7 percent over February 2010, of which industrial production of the state sector grew 12.1 percent (industrial production of the centrally governed segment improved 13 percent and that of the locally governed segment was up by 8.5 percent), that of the non-state sector soared 18.5 percent and that of the foreign invested sector increased 20 percent.

This takes industrial production in the first two months of this year to VND130.93 trillion, up 14.6 percent from the same time last year, of which industrial production of the state sector increased seven percent, that of the non-state sector soared 17 percent and that of the foreign invested sector increased 16.6 percent.

Actually, many important industries had plans for increasing productivity. Electric power supply was stable during the Tet (Lunar New Year Holidays) time because good related preparations were made and no major problems related to electric sources and networks occurred. Electricity production amounted to 7.195 billion kWh in February 2011, an increase of 13.47 percent over February 2010.

Although oil and gas mining in domestic and overseas fields in February 2011 decreased due to Tet holidays it was stable and safe. Specifically, crude oil mining came to 1.2 million tonnes in February and 2.4 million tonnes in the first two months of 2011 (the latter of which is four percent less than the first two months of 2010), and gas mining was 0.7 billion cubic meters in February and 1.5 billion cubic meters in the first two months of 2011. Oil and gas survey was accelerated in February. The Chim Sao field was expected to be put into exploitation in July 2011, while Te Giac Trang (White Rhino) and Dai Hung (Great Bear) fields (Vietnam) and another field (Dana) in Malaysia were expected to be exploited in March 2011.

Clean coal production was an estimated three million tonnes in February 2011 (up 12 percent from February 2010), taking the total to seven million tonnes in the first two months of this year (8.5 percent more than the same time last year). Coal sales to major households were almost 4.5 million tonnes (up 39.1 percent). Of this, sales to electricity households were almost two million tonnes (up 49.2 percent), while those to cement households came to almost 1.1 million tonnes (up 35 percent). To satisfy fertilizer and paper industries' production and reserve demands, the coal sector sold an amount of clean coal to nitrogenous fertilizer households that is 3.5 times the target, with its sales to paper households being 2.7 times the target. Due to the coal export control policy, coal exports came to an estimated 1.3 million tonnes in February 2011, which is 50.5 percent less than February 2010.

Steel production was 385,900 tonnes in February and 861,100 tonnes in the first two months of 2011, the latter of which is 8.9 percent more than the same time last year. The Vietnam Steel Corporation produced 181,600 tonnes of steel billet in the first two months of this year, up 32.6 percent from the same time in 2010. The J-Spiral Steel Pipe Company Ltd (JSP)'s steel pipe factory began production in February and is expected to provide the market with 50,000 tonnes of product each year.

Continuing to be a major exporter, the textile/garment industry grew considerably in February, with the production of fabrics made of synthetic and artificial fibers increasing 22.3 percent. To fulfill partners' orders, many manufacturers in the sector increased shifts. Textile and garment exports came to an estimated US$2.16 billion in the first two months of this year, an increase of 54.2 percent over the same time last year.

Leather and footwear production in February 2011 is considerably higher than February 2010. The industry made 3.6 million pairs of imitation leather shoes of different kinds (up 53.1 percent) and 27 million pairs of sport shoes (up 46 percent). The production of imitation leather shoes of different kinds in the first two months of 2011 increased 14.9 percent while that of sport shoes soared 30.9 percent compared to the first two months of 2010. The stable production contributed to prompt delivery and the 37.8 percent increase in footwear export revenue.

Although industry saw a high growth in the first two months of this year, changes in prices, foreign exchange rates and bank loan interest rates will be major challenges for both businesses and residents in the coming time. To surmount the challenges, businesses are recommended to promote sales in the domestic market, find concrete solutions to problems in production and trading activities, review product cost and streamline production to reduce cost, increase profit and contribute to taming inflation./.