Stone mining and processing industry in Quy Hop: Building brand, dominating the market

(Baonghean) - 6In recent years, due to many difficulties in production and business, some stone mining and processing enterprises in Quy Hop have had to stop operations. What to do to restore and develop production and business is a problem that Quy Hop and other enterprises are struggling with.

Current situation

Of the 241 small and medium enterprises registered to do business in Quy Hop, 129 are operating in the field of mining, processing and trading of various types of stone. According to Mr. Nguyen Giang Hoai - Chairman of the Association of Small and Medium Enterprises of Quy Hop district, most of the stone mining and processing enterprises in Quy Hop have invested in equipment worth tens of billions of VND, modern machinery and equipment, ensuring the exploitation and processing of high-quality construction materials, competitive enough with enterprises in the same industry nationwide. Stone mining and processing enterprises in recent years have attracted thousands of workers and contributed a high amount to the State budget. However, since 2011, most of the enterprises are facing many difficulties in production and business.

Stone processing with modern technology line at Phu Quy Stone Company.

Phu Quy Stone Company, where Mr. Nguyen Giang Hoai is Chairman of the Board of Directors, has a total investment of approximately 5 million USD. With 200 employees, the company's stone products have been exported to many European and Middle Eastern countries... and have contributed about 4 billion VND/year to the budget. However, the company is currently facing many difficulties. Mr. Hoai said: There are many reasons leading to difficulties for the stone industry such as bad weather, high electricity and gasoline prices, many stone mines are temporarily suspended and have not been re-issued, the foreign market is stagnant due to economic recession, political crisis... Besides, there are also reasons from mechanisms and policies such as the ban on exporting block stone is an example. Many businesses have not prepared processing technology, have not found a consumer market, so when block stone is not exported, production has stagnated...

Although not as large-scale as Phu Quy Stone Company, Long Anh Private Enterprise is also a unit with modern equipment and machinery for mining and processing stones in Quy Hop. According to Director Dang Van Long, the enterprise has about 100 workers both mining and processing; products are consumed both domestically and internationally and on average contribute about 2.5 billion VND/year to the budget. Since 2011, product output has encountered many difficulties, making jobs and income for workers uncertain. Therefore, some workers have switched to other jobs or sought work in the same industry in Laos.

Building a brand, dominating the domestic market

According to the leaders of Quy Hop district, the stone mining and processing industry plays an important role in the economic development of Quy Hop. Among 129 stone mining and processing enterprises, 9 enterprises have a total investment capital of 20 - 30 billion VND, revenue of 10 - 20 billion VND, and pay the budget 1 - 3 billion VND/year; 7 enterprises have a total investment capital of 10 - 20 billion VND, revenue of 5 - 10 billion VND, pay the budget 0.5 - 1 billion VND/year; 39 enterprises have a total investment capital of 4 - 10 billion VND, revenue of 1 - 5 billion VND, pay the budget 100 - 500 million VND/year; the remaining 74 units are small-scale, pay the budget less than 100 million VND/year.

In recent years, the district has created a clear legal corridor, ensuring compliance with the law to help businesses deploy investment and start operations quickly; focusing on planning and building industrial clusters in the Town, Chau Quang, Chau Hong and is implementing investment in building technical infrastructure for Song Dinh Industrial Park to help businesses stabilize production. In early 2013, in the spring meeting with businesses in the area, the district and stone mining and processing businesses discussed directions in production and business. Thereby, focusing on deep processing production, building the Quy Hop stone brand to dominate the domestic market is a direction that has received high consensus.

Discussing the new direction that Quy Hop district has suggested, Director of Long Anh Private Enterprise - Dang Van Long shared: "We highly agree with that direction because this will be a good solution to remove difficulties for businesses in the current period. However, to implement it, besides the efforts of businesses and the Association, the role of the district and provincial authorities and related sectors is very important...".

In his role as Chairman of the Association of Small and Medium Enterprises of Quy Hop District, Mr. Nguyen Giang Hoai suggested: Hopefully, when constructing projects using budget capital, pay attention to using stone products produced here. This is an effective way to promote the Quy Hop stone brand to those who set foot in Nghe An.

Nhat Lan