The export of manufactured and processed goods maintained good momentum and grew by 86% this year, compared to 85.5% the previous year.
Vietnam's industrial sector grew by 9% in 2022, according to a report published on Monday by the Ministry of Industry and Trade (MoIT). Minister Nguyen Hong Dien said the sector had made significant progress despite numerous difficulties and challenges, including complicated geopolitical developments around the world, rising trade protectionism, disrupted supply chains in the aftermath of a global pandemic, and tightened monetary policies by major central banks.
"In order to better respond to and mitigate the damage caused to Vietnam's economy, our ministry has been working closely with other governmental agencies, local authorities, business leaders, and experts to strengthen the country's domestic supply networks and diversify our export markets," he said.
Workers in a shift at a textile company in Hung Yen province
Deputy Minister of Industry and Trade, Tran Quoc Khanh, said this year's 9% growth reflected the sector's resilience and ability to adapt to the post-pandemic global economy. In addition, the sector had stayed on the right course with a growing portion of high-tech, manufacturing/processing industries and a shrinking portion of natural resource extraction-based industries.
This year, manufacturing and processing, which reported growth of 9.5%, continued to be the main driver for the entire sector, contributing 86% to the country's total export despite difficulties securing orders in major industries such as footwear, textile, furniture, and electronics.
However, major shortcomings, such as being overly reliant on imports of raw materials, subpar productivity, and efficiency, continued to plague its development.
Dien said the sector's targets for next year would include keeping a growth rate at 8-9%, bringing manufacturing/processing industries' share of total GDP to over 25%, increasing total import/export turnover by 6%, and maintaining a trade surplus.
The continuation of sectoral restructuring, which encourages industries that employ digitalization, the application of advanced science and technology, as well as addressing numerous challenges faced by the sector, would be among the ministry's top priorities for 2023. Others would include greater integration into the global supply chain and the global economy, the development of the domestic capacity to provide raw materials for industrial production, focus on the auto industry and energy supply.
Regarding the recent fuel shortage and fuel traders' grievances over rising costs and declining profits, MoIT's leaders said the ministry would keep a close watch on developments in the global oil market and measures would be taken to improve the management of domestic fuel trading activities."
TEXTILE AND GARMENT & FOOTWEAR INDUSTRY REPORT - DECEMBER 2022