Industry shows signs of recovery at the end of the year.

(Baonghean) - Towards the end of the year, there is a noticeable improvement in industrial production and commercial services in localities outside the central region, with new factories and projects coming into operation.

Transporting steel sheets for sale at Hoa Sen Quynh Lap Factory (Hoang Mai Town).

The new factories...

Hoang Mai town is transforming day by day. Along with the new administrative area coming into operation and infrastructure upgrades, many new projects have come to Hoang Mai town and are operating effectively over the past year. The most notable example is the Hoa Sen Quynh Lap factory, the second largest factory of the Hoa Sen Group nationwide. Located on the coast of Quynh Lap, on Dong Hoi road, the imposing factory attracts nearly 900 workers with an average salary of 9 million VND per person per month, including more than 700 workers from Nghe An province.

Mr. Nguyen Van Phuong, Deputy Director of the factory, said: "From the beginning of 2016 until now, the factory has sold all its products, contributing 36.4 billion VND to the local budget and achieving a pre-tax profit of 20 billion VND. Hoa Sen Group is investing in phase 2 of the factory and the framework is now complete. It will be operational around the second quarter of 2017. With modern technology, the Hoa Sen Quynh Lap factory operates automatically, primarily controlled by computers."

Since the factory started operating, food and beverage services have sprung up around it, partially meeting the needs of the workers. The Vinatex Hoang Mai garment factory, with 200 workers, is now starting its 2017 export plan to Japan.

According to a report from Hoang Mai town, the value of industrial and handicraft production increased sharply in the last months of the year, with many factories contributing to an annual growth rate of 33.18% compared to the same period last year.

The industrial and service sector in Tan Ky district in 2016 also brightened with the emergence of many new projects and factories. According to the district's report, last year, industrial and handicraft production continued to develop, with product output continuing to increase, such as: sugar increased by 16.8%; fired bricks increased by 40%; tap water increased by 7.8% compared to 2015... Service sectors continued to develop, with total retail sales of goods at current prices estimated at 4,348 billion VND, an increase of 7.5% compared to 2015.

The Hoang Nguyen brick factory in Nghia Dung commune (Tan Ky district), which started operating in April 2016, has created jobs for workers with an average salary of 5 million VND per month. Clearing low hills to build the factory, the plant began operations just one year after the project was initiated and construction started. The factory has two production lines: one with a capacity of 22 million roof tiles per year and another with a capacity of 5-10 million bricks per year. To date, the total investment has reached 80 billion VND.

At the Truong Hai automobile showroom project on Ho Chi Minh Highway, the investor has currently built the largest automobile dealership and showroom in Western Nghe An, serving 10 mountainous districts, and also constructed a large-scale automobile repair center there. The total investment for these two projects currently amounts to over 70 billion VND.

Inspecting products at Hoang Nguyen Brick Factory (Tan Ky).

Last year, the Provincial People's Committee approved the investment policy and allowed site surveys for five projects in Tan Ky district, including three major projects: a cultural and event center, a hotel; a central market; and a rest stop and gas station. In addition, there are urban development projects; a superfine limestone powder factory, etc.

Shifting trends

While in the past, many projects and factories sought out central areas like Vinh City, Nghi Loc, and Cua Lo, investors are now tending to shift to midland and lowland mountainous regions or localities with abundant resources, convenient transportation, and a plentiful labor force.

One of the reasons projects are successfully located in districts far from the city is the attention and dedication of local government leaders to businesses and entrepreneurs. "Technology and equipment are important, but people are the most crucial. Besides land clearance and providing land, local leaders also went to great lengths to facilitate us in obtaining mining permits. From the time the project was initiated, the factory was operational within just one year," said Mr. Nguyen Van Lien, Director of Hoang Nguyen Brick Factory (Tan Ky), speaking about the role of the local government.

Investing in transportation infrastructure to support projects in Quynh Luu district.

This is also true in other localities such as Thai Hoa town, Anh Son district, etc. With a proactive spirit of attracting investment and working directly with businesses to exploit potential advantages, these districts have seen the establishment of many new factories, creating significant value in the area, leading to the development of goods and services, and the flourishing and vibrancy of rural villages.

For example, in Thai Hoa town, although it is not part of an industrial zone, it has developed several industrial clusters, attracting a number of investment projects such as garment factories, white stone production plants, and woodworking factories.

The Nam Trung stone processing plant in Thai Hoa town has recently started operations.

As industry develops, trade and services also benefit, creating more jobs for workers in their hometowns and contributing to the economic restructuring of rural areas.

Chau Lan