Nghe An: Lack of input materials, sugar, milk... loss of revenue

(Baonghean.vn) - In 2017, Nghe An set a target of achieving an industrial production value growth rate of 15% compared to 2016, however, by the end of the third quarter, many products still did not complete the plan.

According to Decision No. 6587/QD-UBND dated December 22, 2016 of the Provincial People's Committee, the assigned target industrial production value is 44,435 billion VND.

Up to now, according to the Department of Industry and Trade, there are 7 products expected to exceed the plan, with the excess value of 9,468 billion VND. Key products with a fairly high growth rate compared to the same period and the ability to complete the plan target include electricity, beer, steel sheets, and panel boards...

Steel products are manufactured at Hoa Sen Steel Factory - Dong Hoi Industrial Park. Photo: Tung Chi

The reason for the high increase in newly added production value as above is mainly due to Hoa Sen steel and corrugated iron products achieving high production value while the province's 2017 plan is low, so the difference in added production value is very large (about 6,352 billion VND). However, this product's contribution to the total product value in the province (GRDP) is insignificant because it is mainly processed.

There are 12 products expected to not complete the planned target, production value decreased compared to the plan by 3,094 billion VND. Offsetting the increase and decrease in production value is 6,373.7 billion VND.

Automatic production line at TH Milk Processing Factory. Photo courtesy

For example, processed milk products: The designed capacity of the two factories is 236 million liters/year, however, the total output of processed milk of all kinds in 8 months only reached 111.3 million liters, the estimated output for the whole year of 2017 is only 166.5 million liters, while the planned target is 200 million liters. The main reason is that the amount of raw fresh milk is not enough to supply the factory, although the current consumption market is very good.

This year's diameter is also forecast to be unsatisfactory, with the 8-month output of 3 factories reaching 74,370 tons, down 25.5% over the same period, and this year's pressing season ended a month earlier due to a lack of input materials.

In addition, other products such as packaging, beer cans, fish sauce, fertilizers, cigarettes, gas lighters, etc. achieved low results and had difficulty completing the plan.

Textiles and garments are also products that are forecast to have difficulty achieving their annual plan. Photo: Tung Chi

According to Mr. Hoang Van Tam - Director of the Department of Industry and Trade, assuming that other industrial products complete the plan, the possibility of implementing the plan on production value and growth rate of the entire industry in 2017 is very high. However, the added value of the industry contributes to the total product value and economic growth rate of the province is not commensurate (increased production value in processed products leads to high input costs). Therefore, the Provincial People's Committee needs to continue to have drastic solutions to ensure the completion of the economic growth target set for 2017.

Tung Chi