Nghe An industrial production index increased by an average of 10.81%

(Baonghean) - The average industrial production index (IIP) in the first 9 months of the year in Nghe An increased by 10.81% over the same period.

Steel - one of the industrial products that finished early in 2017. Photo: Thu Huyen

Steel sheet, planks… finish early

Key products with good growth rates compared to the same period and the ability to complete planned targets in Nghe An include electricity, beer, steel sheets, and panel boards...

The earliest to reach the finish line are Hoa Sen corrugated iron products manufactured in Dong Hoi Industrial Park (Hoang Mai town). Production began to stabilize in June 2017, averaging 50,000 tons per month. In the first 8 months of 2017, Hoa Sen corrugated iron and steel output reached 265,000 tons, with two factories reaching maximum capacity. The whole year of 2017 is expected to reach 465,000 tons, exceeding the planned target many times, an increase of 481% (the 2017 plan is expected to be 80,000 tons of alloy steel), with monthly exports reaching 10,000 - 15,000 tons, to the US and EU markets.

The finger jointed boards and MDF of Nghia Dan finger jointed boards and MDF factory also have a good output. The equipment lines have been effective, the production output has reached 392 m3/day and night; mainly exported to the Indian market, bringing the expected output in 2017 to about 110,000 m3.

Regarding beer products, despite many difficulties, they still basically maintain market share and promote equipment capacity well. In 2017, the plan was to produce beer in Nghe An at 200 million liters, and in 8 months, they produced 130.4 million liters, an increase of 2.76% over the same period, reaching 65% of the plan (of which Saigon - Song Lam beer reached 61.8 million liters, Saigon - Nghe Tinh beer reached 34.2 million liters, and Hanoi - Nghe An beer reached 34.4 million liters).

Since August 2017, Saigon - Song Lam Brewery has changed its production structure, increasing the amount of canned beer and reducing the amount of bottled beer, so beer output may decrease but sales will still increase and taxes paid to the budget will also increase. Thus, if it maintains good sales promotion activities and promotes and markets products during the upcoming Tet holiday, beer products will likely exceed the plan.

Exported wooden products of May Forestry Joint Stock Company. Photo: Thu Huyen

Many products fail due to lack of raw materials.

Through review, there are currently about 12 products that are difficult to meet the set plan. For example, processed milk products: The designed capacity of the two factories is 236 million liters/year, however, the total output of processed milk of all kinds in 8 months only reached 111.3 million liters, the estimated implementation for the whole year of 2017 is only 166.5 million liters, while the planned target is 200 million liters. The main reason is that the amount of raw fresh milk is not enough to supply the factory, although the current consumption market is very good.

Or sugar products, the output of 3 factories in 8 months reached 74.37 thousand tons, down 25.5% compared to the same period, this year's pressing season ended 1 month early due to lack of input materials. The worrying thing is that the sugarcane growing area is increasingly narrowing, sugarcane output is decreasing, and sugar content is low.

Knitted clothing, in the first 8 months of 2017, only reached about 10.7 million products/plan of 17 million products. The reason is due to the impact of objective factors such as the economy of some countries importing textiles from Vietnam is facing difficulties.

Regarding cement, Nghe An is one of the key cement production centers of the country. The 2017 plan aims to reach 3.5 million tons of cement after putting into operation the Song Lam Cement Factory and Nghi Thiet Cement Grinding Station. However, by August 2017, the cement output of the 3 factories in the area had only reached 1.568 million tons.

Other products such as refined tin, packaging, beer cans, fish sauce, fertilizers, cigarettes, gas lighters... achieved low results and had difficulty completing the plan.

This year, textile products are facing many difficulties in terms of output. Photo: Thu Huyen

Need for synchronized solutions

The industrial sector in 2017 set a target of 15% growth in production value compared to 2016 (added value increased by about 12%), the total production value of the industrial sector according to the assigned target is 44,435 billion VND (Decision No. 6587/QD-UBND dated December 22, 2016 of the Provincial People's Committee).

Up to now, according to the Department of Industry and Trade, there are 7 products expected to be completed beyond the plan, with an excess value of 9,468 billion VND. The reason for the high increase in newly added production value is mainly due to Hoa Sen steel and corrugated iron products achieving high production value while the province's 2017 plan is low, so the difference in additional production value is very large (about 6,352 billion VND). However, this product's contribution to the total product value in the province (GRDP) is insignificant because it is mainly processed.

To promote production and business development, and achieve the economic growth target in 2017 in accordance with Directive No. 24/CT-TTg dated June 2, 2017 of the Prime Minister, the Ministry of Industry and Trade coordinates with other sectors and localities to regularly hold dialogues to promptly resolve difficulties and problems of enterprises, and maximize the capacity of invested machinery and equipment. However, in the long term, it is necessary to focus on supporting startups, prioritizing credit capital, etc. to promote economic development in the private enterprise sector.

Continue to accelerate site clearance for key infrastructure, industrial and service projects. Support businesses to expand markets and integrate internationally through trade promotion activities, supply and demand connection, etc. to stimulate demand for the province's industrial products.

Thu Huyen