In 2022, complicated development of COVID 19 pandemic and the war between Russia and Ukraine are major obstacles to the global economic recovery. These factors also pose new challenges to the supply chain and create greater pressure on the inflation. An effective COVID-19 preventive and vaccination strategy together with the adoption of appropriate policies and mechanisms to support economic restoration and development, improve the investment and business environment and reform administrative procedures, digital transformation in Viet Nam and the global economic recovery have had very positive impacts on social and economic development of the whole country in general and Nam Dinh province in particular. The recovery and growth have been recorded in most of industries, economic fields and localities. However, in the first months of the year, increased prices of goods and raw materials in the world put great pressure on the production costs of enterprises. Specifically, rocketing prices of oil and gas have led much higher prices of goods and services creating greater pressure production and business activities and thus slowing down the economic recovery process. China's zero-COVID approach and strict lockdowns have caused very bad supply chain disruptions, congestions of flows of goods through Northern border gates.
Being fully aware of impacts of these factors, Nam Dinh’s Department of Industry and Trade has developed specific programs, action plans with close response to pandemic, economic development in the world to rapidly, determinately key tasks and solutions and advised timely the local authorities to overcome difficulties in order to mobilize all resources for the development. Joined efforts of the province and the business community have helped Nam Dinh achieve a relative high growth rate of the industry and trade sectors compared to 2021.
1. Industrial production
- Industrial production index is estimated to increase by 13.7% compared to the same period in 2021. Of which the growth rates of the processing and manufacturing industry, the production and distribution of electricity, gas, hot water, steam, and air-conditioning, water supply, waste, and wastewater treatment are increased by 13.8%, 5.3% and 5.1% respectively while that of the mining industry is decreased by 3% in compared to the same period in 2021.
- Manufacturing of major industrial products increased compared to the same period in 2021: of which the production of towels, fabrics, yarns, ready-made clothes, footwear, printed products and clay bricks are increased by 9.1%, 11.8%, 16.1%, 27.1%, 13.5%; 27.1%, 16.6% respectively.
2. Commercial activities
Import and Export: In the first half of 2022, Viet Nam's economy shows signs of recovery and development after the COVID-19 pandemic. The implementation of 15 Free Trade Agreements (FTAs) including the Regional Comprehensive Economic Partnership (RCEP) officially taking effect as from 1 January 2022 has effectively enabled the import and export of Vietnamese goods to big markets. The export of goods in the first months of 2022 is recorded with positive signals. The export value is estimated at 1,305 million USD, increased by 10.3% over the same period of last year. The import value is estimated at 790 million USD, increased by 16.4% over the same period of 2021.
In the first half of 2022, the world's economic - political situation was volatile, causing the prices of many commodities to increase rapidly, which had a negative impact on the domestic market. Besides, the economic recovery after the pandemic also led to a sharp increase in commodity prices. High prices of raw materials due to scarcity, especially the price of coal, has had a big negative impact on the production activities of many businesses and posed many potential risks to a high inflation rate in the next period.
Total retail sales of goods and services in the province was estimated at 29,408 billion dong, increased by 14.5% over the same period last year, of which retail sales of goods was estimated at 26,195 billion dong, increased 14.2% over the same period in 2021. The average consumer price index increased by 2.36% over the same period in 2021.
3. Key tasks and focuses in the second half of 2022
Based on the sector's tasks in 2022 and estimated results for the first 6 months of the year, in the last 6 months of the year, Nam Dinh Industry and Trade industry strives to achieve the industry's targets:
- The industrial production index for the whole year is increased by 14% or more compared to 2021;
- The value of exported goods reached more than USD 1,695 million making a total annual value of more than USD 3,000 million (higher than planned target).
Key tasks for industrial and trade development in the last 6 months of 2022 are as follows:
Timely implement policies and regulations of the State to remove difficulties and obstacles for enterprises to develop their production, business activities, promote exports and trade;
Continue to attract and develop industries that use modern technology, have high added value and are capable of making great contributions to the state budget revenue.
Support and create favorable conditions for businesses to build and promote industrial product brands to improve to help improve the competitiveness.
Focus on improving the efficiency of trade promotion activities, market information, build brand names of goods;
Promote exports, create conditions for circulation and consumption of goods;
Encourage and create favorable conditions to attract different economic sectors to invest in developing trade in goods and services towards building more civilized, modern models, especially large corporations.
Nguyen Kieu Ly
Department of Information, Library and Trade Promotion - VIOIT