Economy thrives right from beginning of year

Source: Pano feed

Thriving signs in credit, a reasonable average level of interest rates, etc. have been creating positive effects helping Hai Duong provincial economy grow.

Hai Duong Garment 2 JSC. is focusing on producing export products in the first months of the year

Many thriving signs in credit, a reasonable average level of interest rates, and enterprises’ confidence in economic recovery in the world as well as Vietnam have been creating positive effects helping Hai Duong provincial economy grow and prosper right from the first months of the year.

Capital absorbability improves

One of positive signs in the provincial economic development in the first three months of this year compared with the same period last year was capital absorbability.

Ms. Nguyen Thi Bai, Director of Hai Duong branch of the State Bank of Vietnam (SBV), said following directions of the Government, the SBV, and the Provincial People’s Committee, the SBV’s Hai Duong branch had drastically directed credit institutions in the area to take measures in sync for inflation control, macroeconomic stabilization, and support of economic growth at a reasonable level right from the beginning of 2015.

Therefore, the total outstanding loan has reached VND38,868 billion, up 13.6% year-on-year, credit quality has been guaranteed, and bad debts have been put under control at below 2%. There has not been abnormal development in foreign exchange and gold markets, and the average level of interest rates for loans has tended to decline. Specifically, interest rates are being commonly applied at 6.75 – 8%/ year for short-term loans and 9 – 12%/ year for medium- and long-term loans. These interest rates have facilitated enterprises’ access to credit sources to promote efficient production and business.

Thus, compared with the same period last year, there have been more thriving signs in this year’s credit (without deeply falling by 4.5% as last year), reflecting a considerable improvement in the momentum of economic recovery and enterprises’ capital absorbability, contributing significantly to the provincial economic growth result.

The positive change in capital absorbability is most evident in clear signs of recovery of numerous enterprises in many areas previously stagnating or facing a lot of difficulties, such as shipbuilding, production and trading of constructional steel, and real estate market.

“Many enterprises had to cut ships for sale as scrap iron with stagnant production in previous years but have thrived again since late last year. Especially, since early this year, orders for new ship building have increased very strongly,” said Pham Ngoc Anh, Director of Ha Binh Co., Ltd., a shipbuilding enterprise in Nam Sach.

“The company is currently building four new ships with a tonnage of over 1,500 tons/ ship and a value of more than VND20 billion.

“Previously, shipbuilding workers were jobless, but now it is very difficult to hire laborers. Thus, despite a lot of orders for new building, we have not dared sign contracts.”

The economy has prospered, and many projects have been further invested in by enterprises. In the photo: The third phase of Hoa Phat cast iron and steel complex project is under construction and expected to go into operation in early 2016

A few years ago, steelmakers were afflicted because of the frozen real estate market and competition with imported Chinese steel, but Hoa Phat Steel JSC. (Kinh Mon) has continued to invest more than VND2,000 billion in realizing the third phase of raising the capacity of Hoa Phat cast iron and steel complex project to 1.6 million tons of steel billets/ year.

Mr. Mai Van Ha, director of the company, said many major traffic works of the country, such as expressways and bridges, are being built or perfected. Besides, the people’s housing construction demand is gradually rising and, especially, the revival of many new urban areas have been showing the economy’s better capital absorbability compared with several years ago. This is the basis for Hoa Phat Group to continue bravely investing in the third phase of its project.

The company is also requesting the Ministry of Industry and Trade to allow the expansion of the complex’s lamination capacity to utilize all steel billets produced annually. The project of high quality capacity increase under the first phase of the complex is expected to raise the capacity to 600,000 tons of laminated steel/ year.

Clear growth

Not until 2014 did the province regain its growth momentum; however, the economy grew really strongly in the first three months of this year. Many important economic indices, such as industrial production, sale, inventory, and budget revenue, recorded quite satisfactory signs.

According to the Statistics Office, the industrial production index in the first three months of the year rose by 9.6% year-on-year. In which, the province’s important production sectors continued to maintain moderately good growth rates, typically food production and processing (up 11.3%), manufacture of leather and related products (up 25.4%), metal production (up 25.9%), manufacture of electronic and optical products and computers (up 7.8%), manufacture of electrical equipment (up 99.3%), motor vehicle production (up 53.1%), etc.

Meanwhile, the sale index of the entire processing and manufacture industry in February increased by 17% year-on-year and rose by 12.5% in the first two months of the year with high increases in many sectors, such as manufacture of leather and related leather products (up 54.5%), production of coke and refined petroleum (up 43.6%), manufacture of rubber and plastic products (up 14.1%), metal production (up 17.4%), manufacture of electrical equipment (up 63.7%), and motor vehicle production (up 24.2%).

The increase in the sale index of most industrial production sectors pulled the inventory index of the processing and manufacture industry on March 1 down by 1.5% compared to the previous month.

According to the Department of Planning and Investment, the provincial gross product in the first quarter of the year was estimated to rise by 7.9%, in which the value of agro-forestry and aquatic product manufacture was estimated at VND3,700 billion (up 2.2% over the same period), and the value of industrial production was estimated at VND22,800 billion (up 10.8%). The production value of services was estimated at nearly VND6,000 billion (up 7.6%), and exports slightly increased with the total value of goods estimated at over USD910 million. State budget revenue in the area was estimated at VND2,400 billion (equivalent to 31.8% of the year’s estimate and up 20.3% over the same period last year).

VU UY

Đăng ký: VietNam News

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