Improve the competitiveness of industrial production

(Baonghean) - Nghe An's industrial production index in the first four months of the year maintained a good growth rate, reaching 7.57%. Many key economic sectors and large projects that are continuing to be implemented are expected to be the premise for the province's industrial development in the coming time.

According to Mr. Hoang Van Tam - Director of the Department of Industry and Trade, in recent times, the province's investment attraction has achieved many results in the industrial sector. Many projects after investment and construction are proving effective, some new factories have gone into production with increased product output, thanks to which the local industry has had positive changes. Currently, many large investment attraction projects are being urgently implemented, such as: Dong Hoi port, Hoang Mai 2 cement, Quynh Lap 1 thermal power plant. In particular, there are important large projects that are the premise for the province's development in the following years, such as the project to build and operate infrastructure for VSIP Nghe An Industrial Park, urban and service area, project to build and operate infrastructure for Zone D, Nam Cam Industrial Park,...

Production at Royal Foods Nghe An Company in Nam Cam Industrial Park. Photo: Viet Phuong

Hoa Sen Nghe An One Member Co., Ltd. is one of the subsidiaries of Hoa Sen Group Joint Stock Company, invested in Dong Hoi Industrial Park, Quynh Lap Commune, Hoang Mai Town. Currently, the factory is deploying the installation of color coating line No. 2, cold rolling, and edge cutting.

Mr. Pham Tien Phuong - Deputy Director of the factory said: At the end of May 2017, Hoa Sen Nghe An will export 12,000 tons of finished corrugated iron to Europe, this is an important milestone affirming that Hoa Sen Nghe An can compete fairly not only with domestic enterprises but also in foreign countries, including markets with high standards such as Europe. We are currently completing the target of supplying 350,000 tons by the end of 2017, with revenue of 5,000 billion VND; at the same time, completing and putting into operation new production lines on schedule, improving the production capacity and competitiveness of the Company.

The cluster of key projects invested by Song Lam Cement Joint Stock Company (under The Vissai Cement Group) with a total capital of 13,000 billion VND is expected to create new capacity to promote the growth of the province's industrial value. Currently, Nghi Thiet Cement Grinding Station with a total investment of 1,100 billion VND, designed capacity of phase 1 is 4 million tons/year, has also been completed and put into operation. The cement grinder has completed 1/2 of the grinder - ending phase 1. Phase 2 will install cement grinder No. 2, silos to store materials for the grinder and auxiliary works.

According to the Department of Industry and Trade, in the first four months of 2017, the industrial production index increased by 7.57% over the same period last year. Typically, the production and distribution of electricity, gas, hot water, steam, and air conditioning increased by 23.08%. The main reason for the increase was that in the first months of the year, the amount of water flowing into the lake increased compared to the same period last year, in addition to the sharp increase in demand for commercial electricity. Electricity production is estimated at 597 million KWh, up 15.47%; Commercial electricity output is estimated at 1,034 million KWh, up 25.64%. In addition, the mining industry increased by 8.71%; Water supply, wastewater and waste management and treatment industry increased by 13.12%; Processing and manufacturing industry increased by 6.43% over the same period.

Industrial production index chart for the first 4 months of 2017

However, some key products had low growth and decreased due to lack of input materials and reduced consumption such as: Sugar estimated at 78.3 thousand tons, down 21.64%; bottled beer estimated at 20.1 million liters, down 5.97%; canned beer estimated at 31.3 million liters, down 1.2%.

Regarding low sugar output, Mr. Phan Van Hoa - Agricultural Director of Song Lam Sugar Company said: The designed capacity is 1,500 tons of sugarcane/day, but in recent years it has only reached 800 - 850 tons/day, the 2016 - 2017 pressing season alone reached 50% pressing, the amount of sugarcane reached 60,000 tons/season (while the required capacity is 120,000 - 150,000 tons/season). Sugarcane raw materials were not enough for processing, so the pressing season ended 1 month earlier than planned. "There needs to be timely policies to support farmers to grow new varieties with high yields" - Mr. Hoa emphasized.

The Director of the Department of Industry and Trade added: “In the coming time, Nghe An will have measures to promote and improve the competitiveness and efficiency of industrial production; develop industries with high scientific and technological content, added value and domestic value ratio, energy saving and environmental protection; encourage enterprises to invest in developing supporting industries, increase added value and competitiveness of products... Through these solutions, it will contribute to creating added value for Nghe An industry, helping to increase the competitiveness of industrial products, speeding up the industrialization and modernization process”.

Viet Phuong