Impressive growth of Nghe An industry

Implementing the Resolution of the 18th Provincial Party Congress, Nghe An's industrial structure continues to shift rapidly and in the right direction. The internal structure also has a positive shift towards rapidly increasing the proportion of the processing and manufacturing industry and gradually reducing the mineral exploitation and processing industry. However, in order for industry to contribute more positively to the economy, there are still many issues that need to be resolved.

Movement from key products

According to the Department of Industry and Trade, during the first half of the term of the 18th Provincial Party Congress Resolution, the average growth rate of industrial production value reached 18.6%, higher than the Resolution's target (17-18%). In 2017 alone, growth reached 20.06%, the highest since 2011. The proportion of industry and construction in the province's gross domestic product (GRDP) increased from 27.1% in 2015 to 33.5% in 2017 (the Resolution's target is 40-41%). Many new products are large-scale, making important contributions to growth and helping to complete the Resolution's goals such as: roofing sheets, MDF boards, electronic components, fruit juices, stainless steel water bottles, canned fish, fish sauce, etc. Typically, the current cement production scale reaches 6 million tons/resolution target of 10 million tons in 2020. Currently, investors are actively accelerating the progress of projects: Tan Thang Cement with a capacity of 2 million tons/year, expanding Song Lam Cement phase 2 by 3.8 million. It is expected that the total cement capacity can reach 12 million tons.

Regarding beer production: The current scale has reached 200 million liters/the resolution target is 250 million liters in 2020. In early 2018, the Investment Certificate was granted and the procedures are being completed to start the beer project of Massan Group with a capacity of 150 million liters, the investment is likely to be completed before 2020. The total capacity is expected to reach 350 million liters/year.

Or garment products, currently in the province there are 15 factories with a total operating capacity of 25-26 million products/year. Continuing to implement projects: Minh Anh Garment (Do Luong); Manh Thanh Garment (Tan Ky), expanding Yen Thanh Garment Factory; Nghi Loc Garment and the possibility of investing in an additional Garment Factory in Quynh Luu,... will ensure exceeding the target of 35 million products/year by 2020. Other products such as construction stone, tap water, tiles, split stone, targets on recognition of handicraft villages,... are all likely to exceed the plan. Products that are likely to be achieved if directed strongly include: Processed milk, dried tea buds, rubber, basalt, fiber,...

However, some targets are difficult to achieve, including: frozen seafood; sugar, refined tin, canned meat (currently factories are very passive in terms of production materials), and electricity production (because two thermal power projects are currently facing difficulties in implementation).

Director of the Department of Industry and Trade - Mr. Hoang Van Tam said: The results achieved include the successful and in-depth investment attraction in the industrial sector in the period of 2016 - 2018. Large investors have been attracted with breakthrough projects, contributing to the economic restructuring and creating a premise for growth. The planning and construction of industrial infrastructure has been directed by the entire political system, creating favorable conditions to attract investors. The system of industrial parks, seaports, and transportation continues to be invested in and expanded to serve the production, business, and transportation activities of enterprises better and better. 50 industrial clusters have been planned for development, of which 39 have taken investment and construction steps, basically and promptly meeting the needs of premises for enterprises and small and medium-sized industrial production establishments to invest in production and business.

According to the assessment, Nghe An is increasingly building a new mindset and position, especially after implementing Resolution 26 of the Politburo and innovating the work of promoting, attracting and supporting investment. Thereby, promoting the potential of geo-economic position, choosing the right industrial sectors with advantages to prioritize development. Many industrial production projects of investors with strong brands have been implemented and quickly promoted effectively, such as: Hoa Sen Steel Plant of Hoa Sen Vietnam Group; Cement Plants of The Vissai Group and Vietnam Cement Corporation, Animal Feed Plant of Mavin Austfeed Group, food factories of Masan Group; MDF Wood Factory of May Forestry Joint Stock Company, Thanh Thanh Dat Corporation; Breweries: Saigon - Song Lam, Hanoi - Nghe An, Saigon - Nghe Tinh, Sabeco packaging, TH Group's milk factory, Vinamil, BSE Electronics Factory Korea, Royal Food Canned Seafood Processing Factory, Korean and Taiwanese Garment Factories, Vietnam Textile and Garment Corporation, Hydropower Plants; construction material production facilities, white stone processing facilities,...

Attention to strategic investors

However, according to the assessment, the planning of raw material areas has been overlapping in the past, not closely following actual conditions; the direction of authorities at all levels has not been drastic, lacking the connection between people and businesses. Industrial infrastructure has not been synchronized due to lack of capital, leading to difficulties in attracting new investment, especially in the handover of land. The progress of some licensed investment projects is still slow or has not been implemented (Quynh Lap 1 Thermal Power Plant, Quynh Lap 2 Thermal Power Plant, Tan Thang Cement, ...). Some fields such as: pulp, canned meat, insulation fibers, mechanical industry have not had investors. Therefore, some fields and products have achieved low results, especially mineral exploitation and processing and agricultural, forestry and fishery processing, which are considered difficult to complete the Resolution's goals.

Industrial growth is still mainly based on breadth, the processing sector still accounts for a large proportion, so the added value is low, the contribution to the province's GRDP growth is low and not commensurate with the potential. Many projects use a lot of labor, capital, resources, land, input materials, etc. with average technology level. These are limitations in industrial development that Nghe An has not been able to overcome for a long time.