Nghe An: Industrial production index in July 2022 increased slowly

According to the Department of Industry and Trade, manykey industrial productsincreased insignificantly or decreased compared to June 2022 and decreased compared to July in the same period of 2021. Notably, the industrial production index in July increased by only 1.02% compared to July 2021 (increased by 1.87% compared to June 2022).

Specifically: White stone powder products of factories such as Trung Hai, Toan Cau, Tho Hop in July 2022 decreased due to increased transportation costs, the largest export market is India reducing imports of stone powder products from Vietnam.

Stone powder products prepared for export by Trung Hai Minerals and Trading Joint Stock Company. Photo: Thu Huyen

Cement output decreased by 3.55% compared to June 2022 due to high labor and construction material prices, resulting in slow construction project progress and decreased demand for cement.

Productgarment exportsAlthough it increased compared to the same period thanks to the start of the year with a number of factories coming into operation, large-scale factories in the area in July 2022 such as Minh Anh, Kido, An Hung, Hanosimex had reduced output due to inflation in the economies of target market countries such as the US and Europe, so customers cut orders.

Many textile and garment enterprises are facing difficulties due to inflation in the US and Europe, so customers are cutting orders. In the photo: Production line at Minh Anh - Kim Lien Garment Factory. Photo: Thu Huyen

Electronic component production decreased sharply compared to the same period as target markets such as China continued to implement zero Covid policies, and US market customers cut orders due to the inflationary economy.

Steel pipe and roofing products of all kinds decreased by 10% in output compared to June 2022 due to a decrease in consumption market and increased inventory.

In addition, output of products such as fertilizers and packaging continued to decline compared to June 2022 and the same period in July 2021 due to increased prices and scarcity of imported raw materials.

So,industrial production indexAccumulated growth in the first 7 months of 2022 is slow, estimated to increase by 6.975% compared to the first 7 months of 2021. Of which: Production and distribution of electricity, gas, hot water, steam and air conditioning increased by 20.28%; mining industry increased by 16.30%; processing and manufacturing industry increased by 5.19%; water supply, waste and wastewater management and treatment activities increased by 1.98% over the same period in 2021.