The PMI index of 50.5 in the first quarter exceeded the average threshold, industrial production increased by 7.8%, the highest growth rate in the first quarters of the past 5 years. The processing and manufacturing industry increased by 9.5%.
The recent retaliatory measures by countries and regions against the US’s decision to impose new tariffs are putting considerable pressure on global trade. The World Trade Organization (WTO) forecasts that the volume of global merchandise trade will decrease by 1% this year.
For Vietnam, production and import-export activities in the first quarter of the year were generally positive, with the PMI index of 50.5 exceeding the average threshold, meaning that orders were abundant, thereby creating favorable conditions for domestic production. Therefore, industrial production increased by 7.8% over the same period. This is the highest growth rate in the first quarters of the past 5 years. The processing and manufacturing industry increased by 9.5%.
To maintain this growth momentum, businesses need to be proactive and flexible in adjusting their production and business plans.
The company produces 15 million tons of steel per year, ranking 30th in the world. The first quarter saw a 13% growth. This quarter, the company aims to increase even more, despite the difficult global situation. Because the company has switched from producing low-tech steel for construction to producing high-tech steel for automobile production, wind power, solar power , and high-speed railways .
javascript:if(typeof(admSspPageRg)!=’undefined’){admSspPageRg.draw(2030173);}else{parent.admSspPageRg.draw(2030173);}
Mr. Nguyen Viet Thang – General Director of Hoa Phat Group said: “Instead of exporting a lot of low-value steel that is easily subject to trade lawsuits, we produce high-quality steel . Although the quantity is not much, the added value is high and the world demand is also very large.”
1/3 of the steel pipes used nationwide come from this factory and a part of them are exported abroad. In the past 5 years, Vietnam has been able to completely produce steel coils or more broadly, raw steel domestically, no longer having to import them from abroad as before.
Being proactive in domestic raw materials will reduce the possibility of being accused of origin fraud when exporting steel. As for the automobile industry, the first quarter of this year saw a growth of 24%. The industry is proactively proposing stimulus policies to continue growth.
“We have also proposed to support the automobile industry in terms of special consumption tax . The National Assembly is also considering supporting environmentally friendly vehicles. Firstly, people’s demand will increase, secondly, it is also part of the overall plan of the state and the Government on green transformation of the transportation industry ,” said Mr. Dao Cong Quyet – Vietnam Automobile Manufacturers Association.
Mr. John Rockhold – American Chamber of Commerce in Vietnam said: “Industrial production will now have to rely on automation and artificial intelligence , not cheap labor. Even industries such as textiles, leather and footwear will have to apply high technology and need a team of good engineers”.
Prepare from human resources to energy to change the entire industrial production, creating new products with higher technology. The world situation is urging Vietnam to accelerate this process more than ever, adapting to the big changes that can arise every day.