Sustainable steps for rural industrial development.
(Baonghean)Over the years, Nghe An province has implemented numerous programs to support the development of rural industries, aiming to create momentum for economic restructuring, contribute to job creation and income increase, and shift the rural labor structure. However, the results achieved so far remain very modest.
Currently, the province has 32 industrial clusters (ICs) with infrastructure development underway, covering a total planned area of 467 hectares. Of these, 12 ICs have relatively complete infrastructure, covering a total area of 185.8 hectares. Ten ICs have had their infrastructure investment projects approved and are currently under construction. These ICs have attracted nearly 150 investment projects, with a total investment of VND 1,913 billion, averaging VND 15-20 billion per project. In addition, the province has 119 craft villages that meet the criteria for recognition by the Provincial People's Committee. These craft villages are located in all localities, offering a wide variety of products. Furthermore, there are thousands of small-scale handicraft establishments operating scattered across the province, employing a large workforce.
The development of industrial clusters, small-scale industries, and craft villages has impacted and promoted the industrialization and modernization of agriculture and rural areas; contributing to the shift in economic structure, increasing budget revenue, creating jobs, and improving people's lives. Many areas in the province have undergone significant transformation thanks to the presence of factories and enterprises. Projects within industrial clusters have attracted approximately 8,300 workers, averaging 50 workers per project. In 2012, the production value of projects within industrial clusters reached approximately 1,300 billion VND, accounting for 12% of the province's total industrial production value, and budget revenue reached approximately 120 billion VND. Craft villages have provided regular employment for 25,000 people with stable incomes exceeding 16.5 million VND per person per year. Some products from craft villages and villages with traditional crafts have been recognized as high-quality. The value of handicraft production increased by an average of 18.32% per year.
However, handicraft establishments are scattered and interspersed with residential areas; the technical infrastructure of industrial clusters is underdeveloped and not synchronized. The distribution of craft villages is uneven and mainly concentrated in dynamic economic regions, while in difficult mountainous districts and remote areas, there are almost none. The structure of industries does not accurately reflect the strengths of the district and the province. Specifically, the processing of agricultural and forestry products is still limited; skilled labor-intensive crafts such as embroidery, despite receiving much support, have not yet developed.
Many craft villages are operating at a slow, fragmented, and small-scale pace, failing to generate large volumes of goods or high production value. For small-scale industries, most are fragmented, with outdated equipment, and primarily operate individually to provide employment and improve family livelihoods. In particular, environmental protection in the development of rural industries has not received adequate attention, if not completely neglected, affecting production and people's lives, especially in the fields of mineral extraction, agricultural, forestry, and aquatic product processing, and food and beverage production.
Recognizing that industrial development in rural areas is an essential and crucial solution for socio-economic development, the province has focused on investing in infrastructure and issued numerous programs, policies, and guidelines to encourage and attract investment in industrial development in rural areas. A key highlight is Resolution 06-NQ/TU of the Provincial Party Committee's Executive Board for the 2011-2015 term on the development of industry, small-scale handicrafts, and the construction of craft villages during the 2011-2020 period.
Accordingly, policies prioritizing industrial activities that directly impact agriculture, rural areas, and employ a large workforce have been issued. Despite limited budget resources, the Provincial People's Committee has promptly issued policies to support the development of industrial clusters. These include financial support for detailed planning ranging from 100-120 million VND per cluster; compensation for land clearance at 100 million VND per hectare; and support for investment in technical infrastructure within industrial clusters, including internal roads, drainage systems, and centralized wastewater and waste treatment facilities, with a maximum support of 3 billion VND per cluster. In addition, from the national industrial promotion fund, two industrial clusters, Dinh Son and Na Khuu, received financial support for detailed planning.
Nam Giang Industrial Cluster (Nam Giang commune, Nam Dan district).
The provincial People's Committee also pays attention to planning and supporting traditional craft villages. Between 2002 and 2012, the provincial People's Committee provided over 30 billion VND to localities for investment in infrastructure development, vocational training, production equipment support, and participation in exhibitions for traditional craft villages. In addition, the central government's industrial promotion fund has provided an average of nearly 1 billion VND annually to craft villages in the province. Using local industrial promotion funds, the province has organized a selection process for outstanding rural industrial products at the provincial level, aiming to identify high-quality products with potential for production development and to develop plans for supporting investment in production development, technological innovation, and equipment upgrades.
Mr. Pham Hai Duong, Chairman of Sa Nam Cooperative (Nam Dan Soy Sauce Village), said: In 2012, Nam Dan soy sauce was awarded the title of typical rural industrial product in the Northern region. Since the product received this award, the province has created opportunities for the cooperative to participate in fairs and exhibitions, thus providing an additional channel for promoting and introducing its products to customers. Currently, Nam Dan soy sauce is sold in many provinces and cities such as Hanoi, Dong Nai, Binh Duong, and at tourist destinations throughout the country.
However, support for industrial clusters remains limited. On average, each industrial cluster has an area of at least 20 hectares, requiring at least 30 billion VND for planning, land compensation, and infrastructure development. Currently, the provincial support policy only provides about 3 billion VND per cluster. While significant investment in industrial clusters has been made over the years, it has been fragmented and spread thin due to the large number of clusters, resulting in inefficiency. Consequently, no businesses have yet invested in infrastructure development for these clusters. This work is largely carried out by the district People's Committees through the Industrial Cluster Management Boards.
Due to limited budgets, many districts face significant difficulties. Most industrial clusters have incomplete or inadequate infrastructure, or the investment is irrational, leading to a failure to attract businesses to operate within these clusters. Mr. Le Quang Nhung, Head of the Industry and Trade Department of Nghia Dan District, stated: Due to a lack of funding, the Nghia Long Industrial Cluster has not yet completed its infrastructure investment. The wastewater treatment system, roadbeds, and drainage ditches within the cluster have not been fully developed. Therefore, businesses wishing to operate within the cluster must bear the cost of land leveling themselves. This is a major obstacle preventing the cluster from reaching full capacity.
As for traditional craft villages, they receive support in various forms each year to stimulate development. However, this support is very small compared to the needs and reality. Mr. Nguyen Hong Phong, Director of the Industrial Promotion Center (Department of Industry and Trade), said: The investment and support for craft villages from the province's industrial promotion fund is mainly for encouragement and stimulation because the amount of support is still too small. For example, in Hoa Hai broom-making village (Nghia Hoi commune, Nghia Dan district), people urgently need preferential loans but are facing extreme difficulties. Lack of capital prevents people from proactively purchasing raw materials, so their operations are sporadic and inconsistent, leading to unstable production.
Household producers in Hoa Hai broom-making village (Nghia Hoi commune, Nghia Dan district) are in need of loans to support their production.
Therefore, the development of industrial clusters and craft villages in the province faces many difficulties. Generally, businesses and industrial establishments in the province are small and medium-sized, with weak competitiveness, lack of experience, capital, and access to markets. In addition, although the province has an abundant labor force, its quality is low, skills are poor, and it lacks formal training, making it difficult to access advanced technologies; credit access and complex administrative procedures also hinder the development of businesses in rural areas. The underdeveloped transportation infrastructure in rural areas negatively impacts the cost of manufactured goods. Nghe An is not yet a key investment region, and the financial capacity of investors is mainly small and medium-sized. Mobilizing investment capital for infrastructure development from businesses remains limited.
For traditional craft villages, most lack a specific and systematic development plan. Currently, the number of businesses that effectively support these villages can be counted on the fingers of one hand. The biggest difficulty for these villages is the unstable and precarious market for their products. The main reasons are the lack of market information and customer preferences among the people, the lack of development guidance from local authorities, coupled with outdated production technology, a shortage of highly skilled technicians, and poor product competitiveness.
The mindset and production habits of the local people, unfamiliar with industrial production methods and characterized by impatience, have caused losses for many businesses. For example, in the traditional dó paper-making village of Nghi Phong commune (Nghi Loc district), due to a lack of market for the paper, only about 30 out of 100 households remain. The younger generation in the village is not interested in the craft and has left to seek work elsewhere. Those families that still practice the craft work intermittently, so the risk of the craft disappearing is ever-present.
Given these difficulties, to attract investment to rural areas, all levels and sectors need practical solutions. Regarding capital, continue to mobilize support funds from the central government. Link investment in the construction of industrial clusters with programs supporting rural transportation development to reduce investment costs for localities and investors. In addition, encourage infrastructure businesses to invest in industrial clusters, and encourage investors to bear the cost of leveling the land they have leased to build factories according to the plan.
The organization ensures the provision of sufficient investment resources and creates favorable conditions such as access to raw materials and streamlined investment procedures for the development of industrial cluster enterprises. Mr. Nguyen Huy Cuong, Deputy Director of the Department of Industry and Trade, stated: The Department of Industry and Trade has also advised the Provincial People's Committee on developing policies and mechanisms to increase investment support for infrastructure development, industrial development, and to attract economic entities to participate in industrial development in rural areas. Furthermore, we have requested local authorities to accelerate administrative reforms and create a more favorable environment to support the development of businesses in their areas.
For craft villages, practical support should be selected. This includes support in terms of technical equipment, assistance in finding product outlets, tours, workshops, trade fairs, and vocational training. To create competitiveness, craft villages must constantly improve product quality, innovate designs, and understand market demands. This requires vocational training to focus on highly skilled and specialized workers to create product appeal and reduce labor intensity. In particular, coordination with the Department is needed to restructure crop and livestock varieties, introduce new varieties into agricultural production and processing to build a stable source of raw materials. Local authorities need to actively and responsibly participate in identifying occupations, providing guidance, and implementing specific measures to promote the development of small-scale industries and craft villages.
It is necessary to build linkages between craft villages to create a large and diverse volume of products; to establish links between craft villages and distributors, trade and service enterprises to find markets and ensure stable output and raw material supply for products. Once a stable market is secured, the next important step is building and promoting brands. This is a matter of survival for craft villages. Because without a brand, the products created by craft villages will have no place in the market or in the minds of customers. Besides relying on government support, businesses in industrial clusters and craft villages must be self-reliant using their own internal resources and potential. These are sustainable steps to promote industrial development in rural areas, striving to make Nghe An an industrial province by 2020.
Text and photos: Pham Bang
