Bringing Industry ahead of the Times

“After the tough period of economic downturn, Long An province’s industrial production has stabilised, improved considerably and contributed more to the local economic development,” said Mr Dang Van Lop, Director of the Department of Industry and Trade of Long An. Specifically, industrial growth reached 16.1 per cent a year in the 2011 - 2015 period, industry made up 38.3 per cent of the province’s GDP in 2015 (up 7.8 per cent over 2010), and the sector contributed 11.3 per cent to local economic growth - averaging 11.3 per cent in five years (up 11.6 per cent in 2015). In addition, the industrial scale has constantly increased since the province has over 1,262 industrial businesses (an increase of 324 companies over 2010) with an average investment capital of VND69.5 billion per company (a rise of over VND20.2 billion) and over 8,000 rural industrial units. Furthermore, transport, water and power infrastructure systems for industrial development have been also invested. In the power field alone, the province has renovated, upgraded and invested in new substations and transmission lines based on the national power grid development plan to better meet the power demand of industrial companies.

 

These successes have substantially helped restructure the province’s industry towards a positive pattern where the share of processing, engineering, metal production, electrical equipment and electronics increases and the share of environment-polluting sectors declines. Lop said Long An province now has 16 active industrial parks out of 28 licensed ones with an the occupancy rate of 60.01 per cent and 14 active small-scale industrial complexes out of 32 licensed ones with the occupancy rate of 88.37 per cent. Infrastructure outside industrial zones has also been built to serve investors to carry out their projects in industrial areas.

 

Besides, he added that the province has actively worked to renovate technologies and upgrade production processes by investing in new machinery and equipment to raise production scale and increase exports. Therefore, the Department of Industry and Trade will focus on advising the Provincial People’s Committee to add funds, sourced from industrial and commercial promotion budgets, to support enterprise to develop industry and trade, carrying out energy conservation programmes and cleaner production programmes to help companies to reduce expenses and raise product competitiveness.

 

“Industrial development has been driven by key industrial sectors. We are grasping this opportunity to create development momentum,” said Lop. Speaking in more detail about these contributions, he added that the total industrial production value increased 16.9 per cent a year in 2011-2015 and processing sector usually accounted for over 98 per cent. Food and drink processing contributed nearly 40 per cent, engineering made up for 20.5 per cent, garment and textile contributed 10.6 per cent; and the plastic sector accounted for 7.7 per cent.

 

The Department of Industry and Trade noted that “difficulties facing against the business sector are the province’s, and successes of the business sector are the province’s as well” is a guiding philosophy for Long An to add efforts for a better investment environment and provide most favourable conditions for all economic sectors to carry out production and business investment projects. Hence, in the past time, the department has applied industrial development mechanisms and policies in order to ensure access to resources for all economic sectors; promoted the development of key industrial sectors according to the provincial socioeconomic development master plan, provincial economic restructuring plan, and provincial industrial and commercial restructuring plan to serve the cause of industrialisation and modernisation and sustainable development to 2020, with a vision to 2030. The province will further improve the investment environment and the business environment, raise the provincial competitiveness index (PCI), invite and support investors to carry out large-scale projects, accelerate intensive sector restructuring, boost the development of industrial sectors and products with high added values and export values, encourage companies to conduct research and development on new products and apply appropriate quality management standards. Especially, every year, the department advises the Provincial People’s Committee to increase budgets for industrial and trade development support, seek external funds for industrial and trade promotion and development, and implement effective energy-efficient programmes.

 

In reality, successes cannot come in a few days, but only after a long intelligent process with innovative steps. Lop affirmed, “Industry plays a vital role in national economy and lays the foundation for other sectors to develop. Turning advantages into internal force and potential into external force will be important leverages to develop the industrial sector of Long An province to a new position and reputation.”