Nghe An's industry overcomes difficulties and creates momentum for growth.

Thu Huyen December 28, 2018 10:00

(Baonghean) - In 2018, Nghe An's industrial production maintained high growth momentum, with key products being produced and consumed stably, making an important contribution to the overall growth of the entire economy and achieving the set targets.

Maintain supply of goods and ensure stable employment.

These days, workers at Minh Anh - Kim Lien Garment Joint Stock Company are rushing to complete their production shifts to meet year-end orders. This company is also the leading exporter in the textile and garment sector.

Mr. Dang Viet Dung, Head of the Administrative and Organizational Department of Minh Anh - Kim Lien Garment Company, stated: In 2018, Minh Anh Group's production reached 15,000,000 products, a 123% increase compared to 2017; revenue reached 470 billion VND, export turnover reached 78 million USD, and tax contributions amounted to 6 billion VND. The company's products are very diverse, depending on customer orders.

We process all kinds of goods from the USA, Canada, European countries, and South Korea. Currently, the company has 4,000 employees, including: Minh Anh - Kim Lien: 1,800 employees, Minh Anh - Do Luong: 2,200 employees, with an average income of 6 million VND/person/month.

Textiles and garments continue to lead in export turnover. In the photo: Production at Minh Anh Garment Company - Kim Lien. Photo: Thu Huyen

Meanwhile, in Hoang Mai town, the atmosphere at Hoa Sen Steel Sheet Factory (Dong Hoi Industrial Park - Hoang Mai town) is bustling with activity as the machinery lines and teams of engineers and workers operate continuously during the year-end period. Hoa Sen Steel Sheet Factory was a project that attracted investment in 2015. Within a short time of installation, the factory began operations and proved effective. In 2018 alone, it produced 637,284 tons of products, contributed 62.5 billion VND to the state budget, and created jobs for nearly 1,000 workers with an average income of nearly 8 million VND per person per month.

Leading us on a tour of the factory, Mr. Pham Tien Phuong, Deputy Director of the factory, said that in order to achieve rapid, strong, and sustainable development in a fiercely competitive market, Hoa Sen Nghe An Steel Sheet Factory has quickly implemented phase 3 construction, putting into operation an additional Nof 3 production line with a capacity of 250,000 tons/year. With the most modern and advanced technology system, the factory aims to deliver the best quality products.

Hoa Sen brand steel products are being packaged for export. Photo: Thu Huyen.

Furthermore, projects invested by TH Group and The Vissai Cement Group are also bright spots in industrial development in the area. Industrial parks and clusters have also attracted many projects that have come into operation and are operating effectively. In the Southeast Economic Zone, Nghe An's industrial parks have 92 projects in operation with an estimated industrial production value of 23,759 billion VND, an increase of 45.5% compared to the same period in 2017.
Partnering with businesses to accelerate growth.
According to the Department of Industry and Trade's report, out of 36 key industrial products, 30 products met or exceeded the plan, with some products showing significant increases compared to 2017 and surpassing the plan, including: processed milk (210 million liters, up 26.42%, exceeding the plan by 5%); cement (4.45 million tons, up 70.84%, exceeding the plan by 250 tons); Hoa Sen steel and corrugated iron products (735 thousand tons, up 127%, exceeding the plan by 4.28%); electricity production estimated at 3,350 million kWh, up 35%, exceeding the assigned plan by 19.64%; ready-made clothing (estimated at 27-28 million products, up 22.72%),…

Tàu vào bốc hàng ở Cảng Cửa Lò. Ảnh: Thành Duy
Ships arrive to load cargo at Cua Lo Port. Photo: Thanh Duy

Nghe An's industrial production value in 2018 was estimated at 56,700 billion VND, achieving a growth rate of 19% compared to 2017. In fulfilling its duties, the Department of Industry and Trade participated in the appraisal of industrial production projects to ensure compliance with approved plans. Some projects of considerable scale included: Massan Beer, the adjusted Vinamilk Dairy Factory project, Anh Son MDF Wood Factory, Hai Chau II Confectionery Company; Nghi Loc Garment Factory project (Nghi Lam commune, Nghi Loc district);...

The sector also advised on the development of a plan to develop several souvenir products for tourists in the province for the period 2019-2025, to be submitted to the Provincial People's Committee; and developed the Nghe An Province Supporting Industry Development Program for the period 2018-2025.

In particular, during the year, the industrial sector task force organized two direct working sessions with 30 enterprises in the fields of mineral extraction and processing, mechanical engineering, agricultural, forestry and aquatic product processing, food, and building materials production to promptly propose solutions to the Provincial People's Committee to remove obstacles and difficulties and promote production and business development.

Yarn production line at Hoang Thi Loan Textile and Garment Company. Photo: Viet Phuong
However, assessments indicate that some products are experiencing slow production and consumption due to market difficulties or unstable input materials, such as beer production, packaging, fertilizers, tin smelting, quarrying, and animal feed production. The handover of land for some key industrial projects has been slow, affecting investment progress targets and resulting in negligible contributions to new production value in 2018. Market forecasting and information gathering by businesses and management agencies have sometimes been untimely. The implementation of measures to address difficulties faced by businesses has been slow and has not met expectations.

Recognizing the crucial and dominant role of industry in the economy, and to create a solid foundation for the province's industrial sector, Nghe An continues to call for and attract investment projects, especially in the industrial field. In 2019, the Department of Industry and Trade set a target of achieving and exceeding the planned production value of 68,000 - 69,000 billion VND, with a growth rate of over 19%.

To achieve that goal, the sector is developing key tasks, particularly adhering closely to the targets and indicators assigned by the Provincial People's Committee in 2019 to guide implementation and accelerate the development of industry and small-scale handicrafts, thereby creating the main source of budget revenue for the province. This includes implementing the assigned tasks outlined in the Action Program for implementing Resolution No. 23-NQ/TW dated March 22, 2018, of the Politburo on the orientation for building national industrial development policies until 2030, with a vision to 2045.

Trạm trộn xi măng tại xã Nghi Thiết. Ảnh: Việt Phương
Cement mixing plant in Nghi Thiet commune. Photo: Viet Phuong

Mr. Nguyen Huy Cuong, Deputy Director of the Department of Industry and Trade, said: "In the coming time, we will continue to work alongside businesses, resolve difficulties and obstacles, and promptly promote production and business development. We will support businesses in technological innovation and improving production capacity."

Continue to improve the business environment, focusing on supporting startups, prioritizing credit capital, and effectively promoting industrial development. Remove bottlenecks in infrastructure investment, especially prioritizing the construction of deep-water seaports, logistics systems, and industrial park and cluster infrastructure to create favorable conditions for businesses in exporting goods and attracting new investors.

Furthermore, the sector is strengthening support for businesses to expand their markets and integrate internationally through trade promotion activities, connecting supply and demand; and supporting brand building and development. It regularly provides businesses with timely information on markets, industries, regulations, and barriers in target export markets. It also promotes the development of various markets for goods, services, real estate, etc., to stimulate demand for the province's industrial products.

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Nghe An's industry overcomes difficulties and creates momentum for growth.
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