Nghe An industry grows, creating momentum for export breakthrough
Nghe An is on the rise, ranking in the top 10 in the country in attracting investment, especially FDI capital. When investment projects to build factories are completed and put into production, new products have been added to the industrial sector, and exports have made a breakthrough, especially in the electronics sector.
Industrial production index increased quite well.
According to the Socio-Economic Report published by the Nghe An Statistics Office, Nghe An province's economic growth in the first 6 months of 2024 reached 6.76% (increased by 6.22% in the first quarter; increased by 7.22% in the second quarter), the third highest growth rate in the North Central region and 26th in the country; higher than the 6.15% increase in the same period in 2023.
In 2024, investment attraction continues to be a highlight in the province's socio-economic picture. The total newly granted and adjusted capital was more than 23,759 billion VND flowing into Nghe An in the first 7 months of the year. After attracting investment, many factory chains were invested in and built effectively, leading to continuous good growth in the industrial production index.
In July 2024, Nghe An's industrial production index increased by 11.04% over the same period; industrial production in the area still maintained a fairly good growth rate. Enterprises have promoted re-production, expanded business scale, some new factories after the trial period have had stable commercial products, many new projects have been deployed and put into operation contributing to the economic growth of the province such as: Taical additives of Mega Factories, electronic components, auto spare parts, solar battery modules; leather shoes.
Some manufactured products grew quite well compared to the same period: Micro is estimated at 7.2 million units, 2.6 times higher than the same period last year; Processed stone is estimated at 118.8 thousand m3, up 67.91%; Fiber is estimated at 1 thousand tons, up 63.93%; Fish sauce is estimated at 29.6 million liters, up 62.78%; Headphones not connected to microphones are estimated at 4.6 million units, up 59.07%; Electricity produced in the month is estimated at 298 million kWh, up 52.13%; Ready-mixed concrete is estimated at 0.1 thousand m3, up 50.89%; Electric cable production service is estimated at 594.6 billion VND, up 49.59%...
In the first 7 months of 2024, the industrial production index increased by 10.16% over the same period.
In 2024, large-scale FDI projects are expected to be completed and put into operation such as: Everwin Precision Technology Co., Ltd.'s electronic components and auto parts manufacturing factory phase 1, Goertek electronic components and precision equipment factory, Juteng electronic components and auto parts manufacturing project, Huali export footwear and sandal manufacturing and processing project, Aluminum alloy manufacturing project of Innovation Precision Vietnam Co., Ltd., Tan Viet Metal Science and Technology Factory project producing steel plates and stainless steel with a capacity of 260,000 tons/year... These new projects coming into operation are expected to contribute more products, output, industrial production value, and exports of Nghe An.
In recent times, electronic component manufacturing projects such as Luxshare - ICT, Merry & Luxshare have seen a sharp increase in revenue compared to the same period in 2023 due to stable production of electronic component manufacturing projects in the area, and newly operational projects starting to produce products for the market. Domestic production and consumption projects such as: Masan Food, Hanoi Beer, Hoa Sen Steel, Cement, Construction Materials... remain stable.
Mr. Dinh Van Phong - Head of Enterprise and Labor Management Department, Southeast Economic Zone Management Board
Creating momentum for export breakthrough
The recovery of the world market, increased export orders, and developed industrial production create the premise for export and import growth. Export and import activities in the first half of 2024 continued to flourish and achieved positive results.
According to the Management Board of the Southeast Economic Zone, the production situation has been progressing positively recently; A number of FDI investment projects have completed the investment and construction stages, the demand for imported machinery and equipment has increased, leading to a sharp increase in import value in the economic zone and industrial parks. Projects producing electronic components, export garments... in the economic zone and industrial parks have had more orders, so the export value continues to increase.
According to the Department of Industry and Trade, the province's export turnover in the first 7 months of the year reached 1.677 billion USD, an increase of 26%; import turnover in the first 7 months is estimated at 1.172 billion USD, an increase of 57.17% over the same period in 2023. Some items have a fairly good growth in turnover compared to the same period such as: Textiles, steel sheets of all kinds, footwear, stone powder, cassava starch, wood chips, electric wires and cables increased...
Nghe An enterprises have exported goods to over 135 countries and territories around the world. Export turnover to some markets increased sharply compared to the same period, typically: China increased by 29.12%; Hong Kong increased by 61%; Taiwan increased by 37%; Germany increased by 101.5%.
In particular, electronic equipment and components increased by 72% over the same period; Production of electronic equipment and components is a strong growing industry in Nghe An's export sector in recent years.
In 2024, Nghe An aims to produce 580 million electronic components in the area. With the orientation of prioritizing high-quality FDI capital flows, aiming for green growth and sustainable development, Nghe An is rising to become the new "capital" of electronic components manufacturing in Vietnam when attracting many technology "giants" to invest. Currently, Nghe An is the locality that gathers all 5 technology giants including: Foxconn, Luxshare, Goertek, Everwin and JuTeng. It is forecasted that the total export turnover of electronic equipment and components of Nghe An will continue to increase in the coming years when the projects come into full operation.
Mr. Pham Van Hoa - Director of the Department of Industry and Trade said: In the context of general difficulties, Nghe An's industry and export maintained a high growth rate; the second quarter increased higher than the first quarter. Thanks to the results of attracting investment from previous years, many new products of foreign investors entered the export market. In addition, the Industry and Trade sector also strongly shifted the structure of industrial production and export. That is, strongly developing processing industry, supporting industry, high-tech production participating in the global value chain (such as electrical and electronic industrial products) with a wider export market, especially Nghe An products began to reach large and important markets.
Export is one of the targets that the province has exceeded since the first year of the 2020 - 2025 term. During this term, the Resolution of the Provincial Party Congress set an export target of 1.765 billion USD by 2025. However, from 2021, Nghe An has exceeded the target, reaching more than 2.4 billion USD; in 2022, it reached 2.54 billion USD; In 2023, the total export turnover is estimated at 3.11 billion USD. With the results achieved in the past time, it is hoped that it will create momentum for industrial production and export turnover to continue to have breakthrough results in the coming time.
