Hanoi's industrial production shows positive growth

Local businesses are seizing opportunities to achieve business targets for the year thanks to good performance so far this year.

The production of electronic components at Katolec Vietnam Co., Ltd. (Quang Minh Industrial Park, Me Linh District). Photos: Hanoimoi Newspaper

Phi Ngoc Trinh, General Director of Ho Guom Garment Corporation, shared that the company has received numerous orders and is taking advantage of market opportunities to expand its customer base and increase sales. He expressed confidence that the target of VND1 trillion (US$39.7 million) in sales for 2024 will be achieved.

Echoing Trinh, Cao Huu Hieu, General Director of Vietnam Textile and Garment Group, said that his company is fully booked with orders through the end of 2024 and negotiates contracts for early 2025.

Nguyen Dinh Thang, Deputy Director of the Hanoi Department of Industry and Trade, revealed that in the first nine months of 2024, key indicators in the industrial sector continued to show a positive recovery trend, contributing significantly to the city's overall growth.

In the first nine months of 2024, the industrial production index increased by 5.4% compared to the same period in 2023.

Several manufacturing industries reported significant year-over-year production increases, including machinery and equipment up 26.1%; paper and paper products up 12.6%; apparel up 9.3%; and furniture up 8.7%.

Additionally, the consumption index for the processing and manufacturing sector surged by 9.9% year-on-year. Key sectors showing high growth include textiles, which increased by 33.6%; pharmaceuticals and herbal products rose by 29.4%; and machinery and equipment, with 22.9%. 

Government support boosts business confidence and growth

Local workers at May 10 Corporation factory.

According to Nguyen Dinh Thang, Deputy Director of Hanoi's Department of Industry and Trade, the recovery of global demand and supportive measures by the government and local authorities have positively impacted industrial production in Hanoi, restoring growth momentum. Some sectors gain growth levels higher than those before the Covid-19 pandemic.

He expressed hope that this trend will boost business confidence in the final months of 2024 and prepare them for 2025.

"We are implementing policies to promote production and business recovery, and economic development to alleviate challenges faced by businesses," Thang said.

The Hanoi government has tasked the Department of Industry and Trade to coordinate and push other departments and localities to effectively implement these policies.

In addition, the city is focusing on interest rate policies for priority sectors, improving the investment and business environment, and removing obstacles, particularly for off-budget investment projects involving land use. 

He also emphasized that the city will continue to help companies modernize and expand production capacity while increasing local content by monitoring global economic trends, providing market intelligence, and assisting associations and businesses in tapping into traditional markets and exploring new high-potential ones.

Hanoi is committed to improving trade promotion and connecting local enterprises with foreign counterparts through trade fairs and exhibitions.

The city encourages enterprises to invest in technology and meet the requirements for deep participation in global supply chains, Thang said.

Pham Cong Thao, Deputy General Director of Vietnam Steel Corporation (VNSteel), expressed optimism about production in late 2024, noting that the market recovery will continue due to positive factors.

He highlighted domestic economic growth, improved performance indicators, and ongoing public investment initiatives. The government is also focused on addressing challenges in the real estate and construction sectors. 

“Therefore, we will focus on exploiting the domestic market while also intensifying efforts to find export opportunities,” Thao told Hanoimoi Newspaper.