Nghe An industry strives to reach the finish line as planned

Positive signal

One of the products with high growth rate is cement. Nghe An is a province with potential for cement development because it has abundant limestone resources as raw materials, distributed mainly in the western and northern regions of the province, in the districts of Anh Son, Tan Ky, Do Luong, Quynh Luu, Hoang Mai, Ky Son, Tuong Duong... In particular,Tan Thang Cement Factory(Quynh Luu) uses a synchronous equipment system and technological line of FLSmith - Denmark, which is considered one of the most advanced lines today. The factory has a capacity of 5,000 tons of clinker/day, equivalent to 2 million tons of cement/year.

After a trial period, the entire production line of the factory has now been put into stable operation. Since the beginning of the year, the enterprise has produced more than 500,000 tons of clinker, 261,000 tons of cement; the output consumed is more than 212,000 tons of clinker, more than 257,000 tons of cement.

Tan Thang Cement Factory. Photo: Thu Huyen

Currently, there are 4 cement factories in operation in the area, with a total designed capacity of 7.8 million tons/year. Thanks to technical and technological improvements, the total cement and clinker output of the factories has reached over 7.5 million tons/year, and the total output is expected to reach about 9 million tons in 2021. There are currently 02 cement projects being considered for implementation: Song Lam Cement Factory Phase II: capacity of 3.8 million tons/year and Hoang Mai Cement 2, with a phase 1 capacity of 2.3 million tons of cement/year.

Mr. Le Khanh Sang - Deputy Head of Construction Materials Management Department, Department of Construction

Besides cement, textile is also one of the strengths of the industry.attract investment, continues to affirm itself as one of the province's key industries, contributing to rapidly increasing export turnover and creating jobs for workers... Although the Covid-19 epidemic is complicated, the supply chain of textile materials is not broken, along with the relatively fast investment value of the textile industry, so the production value of this industry in the first 7 months of the year increased by nearly 40% compared to the same period in 2020.

Mr. Nguyen Dinh Vinh - Deputy General Director of Minh Anh Garment Joint Stock Company - Nghe An said: The current encouraging signal in textile and garment enterprises is that orders are abundant, production continues to grow with high export turnover. At the beginning of 2021, many enterprises have signed orders until the end of the year and the following year. To achieve the dual goal of both economic development and epidemic prevention, enterprises proactively equip themselves with alcohol, masks, rapid tests, and develop working plans, arrange safe accommodation, pick up and drop off workers...

Enterprises in Bac Vinh Industrial Park deploy rapid Covid-19 tests for workers to ensure production. Photo: Thu Huyen

According to the Department of Industry and Trade, the industrial production value in the first 7 months of 2021 is expected to reach about 48,240 billion VND, up 28.1% over the same period last year and reaching 60.85% of the plan. The industrial production index increased by 24.45% over the same period in 2020.

Graphics: Lam Tung

Build a script, determined to reach the finish line

However, according to the assessment, some products and industrial sectors, although increasing compared to 2020, will find it difficult to achieve the 2021 plan's targets and tasks.

For example, the estimated output of white stone powder of all kinds for the whole year is about 950 thousand tons/plan of 1,200 thousand tons, due to high sea freight rates, increased transportation time and costs. Although the output of canned and bottled beer has increased compared to 2020, it is still lower than the plan due to the pandemic and reduced consumption. The expected output of the 3 factories in 2021 is about 135 million liters/plan of 185 million liters; Packaging has decreased sharply because customers are businesses that reduce output and stop production during the period of social distancing, so the demand for packaging products has also decreased. Expected to reach 75 million products/plan of 90 million products.

Fiber products in July 2021 decreased by 299 tons compared to June 2021 because businesses in Vinh city could not ensure enough workers during the implementation of Directive 16, import demand from customers in Middle Eastern and West Asian countries also decreased due to the outbreak of the epidemic, the whole year is expected to reach only 14,300 tons/plan of 18,000 tons...

Produced at Prex Vinh Garment Company Limited. Photo: Thu Huyen

The pandemic is evolving complicatedly, so industrial production in the last months of the year continues to face difficulties. However, according to the assessment, along with the efforts of businesses and investors, the contribution of a number of large-scale projects from the end of 2020 and early 2021 coming into operation (Tan Thang Cement Factory, Luxshare-ICT Electronic Components Factory, An Hung Garment Factory, TAAD Garment Factory...) helps the industry maintain its growth momentum.

From the third quarter of 2021, there will continue to be additional contributions from projects: DKC Biomass Pellet Factory, Thanh Chuong Wood Joint Stock Company's Wood Pellet Factory and it is expected that in the fourth quarter of 2021, there will be contributions from Viet Glory Footwear Manufacturing and Processing Factory, Ban Mong Hydropower Plant, etc. Therefore, many products account for a large proportion of production value and determine the growth rate of the industry such as: Cement, processed milk, Hoa Sen steel sheets of all kinds, garment products, electricity production, electronic components, etc. still meet or exceed the plan.

Tuna processing line at Frescol Tuna Processing Plant. Photo: Thu Huyen

The Industry and Trade sector still aims to complete and exceed the set plan. The Industrial Development Index for the whole year of 2021 is expected to reach 16.5-17%; The growth rate of Industrial Production Value will reach about 19%, corresponding to a production value of VND 81,000 billion/the 2021 plan of VND 79,271 billion. To achieve the set target, the Industry and Trade sector has developed a growth scenario and proposed specific solutions. In particular, timely efforts from the business community and investors are needed to fully promote production capacity.

Mr. Pham Van Hoa - Director of Department of Industry and Trade

Accordingly, it is necessary to implement support solutions to reduce land rent, corporate income tax; extend tax payment deadline, support workers, etc. according to the direction of the Government in Resolution No. 68/NQ-CP dated July 1, 2021. The working group directing the growth of the province's industrial sector works with units according to the plan issued from the beginning of 2021 to grasp the difficulties and problems of each project and enterprise. Based on the recommendations and proposals of the units (support for site clearance, land allocation, road construction, stabilizing electricity and water supply, procedures for import and export of raw materials, etc.), advise the Provincial People's Committee on specific solutions for direction.

"Relevant departments and branches need to accompany and guide businesses in preventing the Covid-19 epidemic; support in finding export markets and importing raw materials; and support businesses in promoting e-commerce, digital economy, and sharing economy activities. Direct the development of concentrated raw material areas to ensure input for factories (sugarcane, planted wood, tea, rubber, pineapple, dairy feed, seafood, etc.), invest in building warehouse systems, logistics services and credit support to meet the needs of the processing industry. At the same time, continue to reform administrative procedures, taxes and customs for the mineral exploitation and processing sector; strongly improve the business environment, focus on supporting startups. Promote the implementation of the Supporting Industry Development Program so that businesses in the province have the opportunity to participate more deeply and more deeply in domestic and foreign value chains..." - the head of the Industry and Trade sector emphasized.