Market and product

(VEN) - Statistics by the Ministry of Industry and Trade show thatindustrial production came to about VND74 trillion this May, a 14.2 percentincrease from a year ago, and VND343.5 trillion in the first five months ofthis year, a 14.2 percent increase. Of this, the non-state sector grew 17.1percent and the foreign investment sector increased 16.9 percent.

The mostnotable among key industries in the months was the power industry. Although itwas predicted that power production would be difficult in the dry season ofthis year, the weather has been fairly cool so far this year, and the demandfor power has not increased as high as predicted, power cut did not happen evenin the high dry season from April to May. Power production was about 8.57 billionkWh in May, increasing 8.8 percent from a year ago, and about 39.37 billion kWhin the first five months of this year, increasing 9.3 percent from the samemonths last year. Power consumption amounted to 7.33 billion kWh in May, ofwhich the industry-construction sector consumed 53.7 percent increasing 15.6percent and proving that industrial production continued to grow robustlyduring this time.

Gas extractionfrom domestic and overseas oil fields was fairly stable and safe amounting totwo million tonnes this May and increasing 103.5 percent from a month ago.Crude oil extraction was 10.1 million tonnes this May (increasing 2.8 percentfrom a month ago) and 6.02 million tonnes in the first five months of this year(as much as in the same time last year). Natural gas extraction came to about0.84 billion cu.m in May, up 4.5 percent from a month ago, and 3.98 billioncu.m in five months, as much as a year ago. Liquefied petroleum gas (LPG)production was 244,000 tonnes in these months, up 22 percent from a year ago.Gasoline-oil production amounted to 2.4 million tonnes in the months, up 36.6percent from the same period last year.

Coalproduction and consumption also grew in a stable and safe manner. Clean coalproduction was about 3.98 million tonnes in May, up 7.5 percent from a yearago, and 19.2 million tonnes in the first five months of this year, up 5.5percent from the same time last year, against 3.1 percent in April. Domesticcoal consumption amounted to 12.8 million tonnes in five months and coal exportsdoubled in May but amounted to only 6.3 million tonnes in five months,representing merely 76.5 percent of what was a year ago.

As a result ofthe enforcement of Government Resolution 11, which is to reduce publicinvestment and suspend/stop a number of projects, steel production fellprogressively in May but was still higher than a year ago. Specifically, steelproduction was almost 2.3 million tonnes in five months, a 3.4 percent increasefrom a year ago.

A leader amongkey exports, textile-garments were about US$5.1 billion in the months, up 35.6percent from a year ago. In addition, leather footwear and sport shoes were136.1 million pairs, up 15 percent; imitation leather footwear/boots amountedto 21.3 million pairs, up 3.8 percent in the first five months of this yearcompared with 4.5 percent in the first four months of this year. May footwearexports were almost US$2.4 billion taking third place after textile-garmentsand crude oil. So far this year, most businesses have signed orders for exportuntil the end of the third quarter.

Paperproduction grew steadily in May to keep up with the domestic demand, while atthe same time paper import purchases declined. Paper-cotton production came to169,200 tonnes in May, up 5.8 percent from April and up 17.9 percent from ayear ago. The production amounted to 778,100 tonnes in the first five months ofthis year, up 12 percent from the same months last year. Since June 1, 2011,Hanoi has subsidized the price of school notebooks.

The stablegrowth in industrial production was a positive sign. However, the biggestshortcoming for industrial production enterprises lies in their emphasis onin-width development, rather than in-depth development. For this reason, profitwas not high./.