Expectations for Industry and Trade Breakthroughs

7:12:14 AM | 2/16/2023

The industry and trade sector is expected to shoulder the responsibility of creating development breakthroughs and completing socioeconomic plans of Dak Lak province.

Bright picture

Industrial production and commercial activity of Dak Lak province were quite positive in 2022. The Index of Industrial Production (IIP) slumped 22.23% over 2021. Industrial production value climbed 23% to more than VND17,100 billion.

The processing and manufacturing sector plays an important role, accounting for a large proportion of the province's industry. In addition, the power grid continues to grow. In 2022, the water reserve was stable enough for local hydroelectric plants to operate at their designed capacity and renewable energy projects to work stably. Those factors enabled the province's electricity industry to generate more than 7,300 million kWh of electricity in 2022, up 20% over 2021.

In trade, the total retail revenue of consumer goods and services reached more than VND93 trillion in 2022, equal to 102.8% of the full-year plan and up 8.3% year on year. The industry and trade sector and local enterprises took the initiative in goods to ensure abundant supply for people. Basic necessities were ensured, resulting in no shortages or sudden price surges.

Dak Lak's export value was estimated at US$1.5 billion in 2022, equal to 125% of the yearly plan and up 30.4% over 2021. After the COVID-19 epidemic was controlled, local businesses quickly restored production and their active digital transformation to adapt to the COVID-19 epidemic also facilitated their import and export activities. Coffee prices continued to stay above VND40 million per ton and the share of instant coffee continued to rise in the province's total export turnover. Other exports such as pepper, rubber and elastic thread continued to expand from 2021. In addition, the province had some new exports such as dried macadamia nuts, cocoa, frozen fruits and dried fruits.

Actively seizing opportunities

2023 is the third year of implementing the Dak Lak industrial and commercial development plan for the 2021-2025 period. With a view to promoting the development of competitive, valuable and sustainable products, supporting industrial development with new rural construction, and boosting exports, the industry and trade sector will continue to seize opportunities and overcome challenges to fulfill its requirements and tasks.

Based on a close assessment of market development, potential, opportunities and challenges, in 2023, the industry and trade sector of Dak Lak province targeted to achieve an industrial production growth of 20%. Total revenue of consumer goods and services reached VND95.3 trillion, representing a year on year growth of 2.5%. The export value rose 6.7% to US$1.6 billion.

To successfully achieve its goals, the Department of Industry and Trade will continue to implement Directive 08 of the Ministry of Industry and Trade on increased support for domestic consumption of agricultural products in major producers. The department will simultaneously coordinate with related bodies to support and promptly remove difficulties for local businesses and investors, and boost investment, production and business development. The agency will call for investment in potential projects in line with the province's action plan programs; boost trade promotion; and strengthen domestic and foreign trade connections.

The industry and trade sector is considered one potential spearhead that can grow at a high pace and is expected to create development breakthroughs and help achieve the province's socioeconomic plan. With great potential and advantages in agricultural supplies, hydropower, wind power and solar power, the launch of many consistent policies and measures to restore and boost development will be an important driving force for Dak Lak to achieve and exceed its growth targets.

By Duy Hanh, Vietnam Business Forum