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Local Economy

Last updated: Thursday, August 16, 2018

 

Quang Nam Industry: Impressive Breakthroughs

Posted: Monday, July 23, 2018


In 2007 - the first year of establishment, Quang Nam province had a trivial industry, featured by a very small scale, obsolete equipment and machinery, backward technology, insufficient investment capital, and narrowed output markets. But, after 20 years, the industrial production of Quang Nam province has made spectacular breakthroughs, with some sectors leading the nation’s industry, such as automobile, to turn Quang Nam into an industrialised province. The following conversation with Mr Nguyen Quang Thu, Director of the Department of Industry and Trade, features Quang Nam’s industrial success. Cong Luan reports.

Could you please tell us more about impressive breakthroughs of the Quang Nam industry?
Before Quang Nam was founded, agricultural development was a core economic activity, while industry was almost negligible and volatile due to a low starting point, small-scale production, obsolete machinery and equipment, backward technology, insufficient capital, inadequate managerial and technical qualifications and skills of industrial labourers, low quality products and limited consumption markets.

Since the province was re-established, under the leadership of the Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee; the efforts of authorities, people and the business community; and innovations in management and administration have enabled the Quang Nam industry to achieve positive results. Industrial production has constantly developed, occupied a higher share in the economy, quickened labour restructuring, provided more jobs, increased incomes for labourers; and facilitated local socio-economic development. The sector has enabled Quang Nam to gradually become an industrialised province.

The industrial production value has kept rising at a relatively high rate, with an average growth of 25 per cent a year in the 1997 - 2017 period. In 2017, the value was estimated at VND78 trillion, 65 times that of 1997. The gross regional domestic product (GRDP) structure was positive in 2017. The share of agriculture, forestry and fishery in the economy was down to 11.6 per cent, while the share of non-agricultural sectors in combination accounted for 88.4 per cent.

The industrial structure itself has been shifted in a positive way, with a falling share of the mining industry and a rising share of processing, manufacturing, electricity and water distribution industries. Industrial sectors have developed and affirmed their products in the country, for example, automobiles, electronic products, handicrafts, apparels and footwear that meet expansive domestic and export market needs. The automobile industry is considered a leading and driving force of the province’s industry.

What are key industries of Quang Nam province nowadays? How have these industries been invested for development?
At present, the province is focusing on developing some spearhead industries such as mechanical engineering, industrial parts, electricity, textile and garment, and agricultural product processing.

Quang Nam Automobile and Supporting Industries Project Cluster covers ​​about 2,000 ha in Tam Hiep and Tam Anh industrial parks. The deployment of the project will bring a big source of revenue for the State Budget, create many jobs, facilitate industrial production restructuring and develop the automobile industry in line with the new period. In particular, the development of automotive supporting industries will be an important prerequisite for the development of many other industries and services.

The group of gas-energy project cluster with energy and after-gas consumed industries covers a total area of ​​about 1,000 ha. This project is expected to make an important breakthrough for the Southeast region and Quang Nam province, become a foundation for the province to promote investment in energy, clean energy, chemical and post-gas product industries. The project will generate huge budget revenue and provide many jobs for locals.

Particularly, the group of textile, garment and supporting industry development projects will help develop textile, garment and supporting industries, provide many jobs for locals and form the eastern urban area in Tam Ky City in line with the general development orientation of the province.

As for agriculture, forest and aquatic processing industry, the province will focus on building industrial facilities to expand handicraft production, forest product processing, medicine processing and wood processing to increase the economic value of forest, aquatic and marine products.

Quang Nam supporting industries, for the time being, are weak and insufficient, especially mechanical and garment-textile supporting industries. How are these inadequacies being addressed?
Supporting industries employ many highly skilled workers. Products made by subcontracting facilities are technically typical of strict standards and design requirements imposed by customers. However, Vietnam currently lacks this workforce. Without positive and consistent solutions, it will be a big congestion to economic development in general and supporting industries in particular. Anticipating challenges and barriers against supporting industries in Vietnam generally and Quang Nam specifically will be an important input for policymaking and appropriate development steps.

Nevertheless, in supporting industries, Quang Nam province has greatly impressed two sectors: Automobile parts manufacturing and garment - textile parts manufacturing. The province has adhered to Conclusion 25-KL/TU dated April 27, 2016 of the Third Provincial Party Conference (21st tenure) on orientations and solutions for implementation of key projects in the Southeast region.

Recently, on March 25, 2018, at Chu Lai - Truong Hai Automobile Mechanic Industrial Park, Truong Hai Auto Joint Stock Corporation (Thaco) held an inauguration ceremony of Thaco Mazda Automobile Factory, the largest and most modern car Mazda plant in Southeast Asia that meets global standards of Mazda Japan. The facility will help increase the localisation ratio of automotive industry to 40 per cent in the coming time.

With regard to supporting industries for the textile and garment industry, with its special advantages of land fund, low land rent rates, good infrastructure and open policies, Tam Thang Industrial Park in Chu Lai Open Economic Zone is becoming one of the most favoured addresses of textile and garment industry projects in Central Vietnam. Tam Thang Industrial Park has housed big foreign direct investment (FDI) projects invested by South Korea firms like Panko Textile Factory and Ducksan Vina Textile Components Factory.

Thank you very much!








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