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Dinh Vu

Local Economy

Last updated: Friday, October 19, 2018


Developing Key Industrial Products Needs Creative Approach and Efforts of Each Enterprise

Posted: Wednesday, November 08, 2017

"Making Can Tho City one of the leading localities in the industrialisation process, basically becoming an industrialised city by 2020 and a driving force for the development of the whole Mekong Delta region" is the objective of Politburo Resolution 45-NQ/TW dated on February 17, 2005 on the construction and development of Can Tho City in the period of industrialisation and modernization of the country. To accomplish this goal, Can Tho has taken the initiative in selecting and supporting priority industries in association with key products with high added value to promote export and enhance the competitiveness of industrial products.

Initial effect
On April 9, 2013, Can Tho City People's Committee issued Decision 1270/QD-UBND approving the Scheme on building the list of priority industries and key industries of the city in the period of 2013- 2015, vision to 2020. This identifies five priority industry groups: agro-processing, textiles, footwear, plastics, and chemical industry. The strong efforts of the City Party Committee, the City People's Committee and other local departments, especially the Department of Industry and Trade, in the past three years have developed the five priority industry groups and have achieved results. The outcomes are very encouraging.

The agricultural and aquatic product processing industry is the key industry of the city, accounting for the largest share in the total production value of the sector, including seafood processing, fruit and vegetable processing, rice husking and processing. If in 2013, the production value of agricultural and fishery processing (base price of 2010) of the city reached VND44,650 billion, then by 2016, this number increased to VND62,623 billion, accounting for 70.6 per cent of production value of whole industry. The growth rate of the period 2013-2016 is 12.06 per cent. At present, the agricultural and aquatic product processing industry of Can Tho attracts 195 enterprises, creating 23,863 jobs and the largest source of foreign currency. It plays an important role in the industrial development as well as the economic growth of the city.

Like the processing of agricultural and aquatic products, Can Tho City's textile and garment-footwear industry has developed relatively well. If the value of industrial production of textile-leather and footwear in 2013 was VND1,134 billion, by the end of 2016 it increased to VND1,463 billion, the average growth rate in the period 2013-2016 was about 9 per cent, accounting for 1.65 per cent of the total industry. The textile and garment-leather industry has attracted about 43 enterprises, creating 8,422 jobs.

The plastic industry currently has about 31 enterprises operating, creating about 764 jobs; the production value in 2013 was VND284.4 billion and VND359.3 billion by 2016, and the average growth rate of 2013-2016 was 8.3 percent. Production value of the chemical industry, pharmaceutical chemistry and pharmaceuticals in 2013 reached VND7,499 billion; in 2016, it increased to VND 9,009 billion; the average growth rate of 2013 - 2016 was 6.34 per cent; this industry attracted about 83 enterprises, creating about 4,976 jobs. As for the mechanic industry, there are 142 enterprises operating, creating 3,488 jobs; the mechanical production value of the city in 2013 reached VND3,137 billion and to VND3,706 billion by 2015, an average annual growth rate of 0.89 per cent.

As noted by Mr Nguyen Minh Toai, Director of the Department of Industry and Trade, although Can Tho industry in the 2013-2016 period was still facing difficulty due to the consequences of the economic downturn in previous years, the value of industrial production of enterprises still increased. Generally, the priority industries have enjoyed strong growth, contributing positively to the socio-economic development and the economic restructuring of the city towards service-industry-agriculture (public high technology).

Promoting business performance
To support the development of key industrial products, on September 5, 2014, the People's Committee of Can Tho City issued Decision 07/QD-UBND on investment support with many preferential policies for investors in Can Tho City, especially investment projects in the priority industries and spearhead industries with total investment capital of VND60 billion or more shall be entitled to 20 per cent interest rates for medium-term loans. In addition, the City People's Committee issued Decision 4452/QD-UBND approved the programme on technology innovation to support the development of small and medium enterprises. Can Tho City has amended Decision 1780/QD-UBND dated June 19, 2015 and supplemented some articles of Decision 4452/QD-UBND.

Mr Toai said that the above decisions aim to support small and medium enterprises in the Can Tho city to improve their technology, create a change in productivity, quality and efficiency in production activities. The city also promotes the enhancement of science and technology content and creates favourable conditions for enhancing the competitiveness of products in international economic integration. Since its inception, the Department of Industry and Trade has actively contacted and instructed 36 enterprises to register for the programme of technological renovation of the city, of which 17 enterprises have been supported to renovate technology.

In addition, this unit also supports 33 enterprises registered to participate in the programme of preferential investment in rural agriculture under Decree 210/2013/ND- CP dated December 23, 2013 by the Government with the total invested VND1,504.86 billion in collaboration with the Fund credit guarantee of the city to support businesses access to sources of concessional loans. Besides the practical support of the local government, enterprises need to be brave and creative to turn out high quality industrial products with diverse designs at competitive prices. Therefore, there is no other way except that enterprises themselves have to improve their competitiveness, enhance value added products by improving product quality, brand investment and apply the advanced management to minimise costs.

Hoang Lam

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