Tenants Rush to Complete Annual Targets

In the last months of 2023, tenants in industrial parks in Vinh Phuc province have been promoting creative labor emulation movements and applying technical improvements to increase labor productivity and product quality; connecting and seeking new markets to complete their targets in 2023.

In the year to date, due to adverse impacts of the global economic recession, many tenants in industrial zones have encountered numerous difficulties and challenges on lack of orders and accepted to cut staff. Before this reality, Vinh Phuc province directed all relevant bodies to review and remove difficulties and obstacles against them; urged credit institutions to strictly comply with the State Bank's regulations on interest rates to review and reduce deposit interest rates by 0.5%-3%/year, reduce operating costs to keep stable lending interest rates to support businesses to revive and develop their business activities.

In particular, the Vinh Phuc Industrial Zones Management Board has actively supported and facilitated investors and enterprises to quickly handle administrative procedures to launch investment projects, expand production and business operations, and increase investment capital or carry out procedures for adjusting targets and project implementation progress. Therefore, many businesses have managed to overcome their rough times, maintain stable production and sign new orders.

As a 100% Japanese-invested manufacturer and trader of PP, PE flexible plastic packaging and fittings, to maintain export markets such as Japan, South Korea and the Philippine and about 8% of its revenue in Vietnam, Kohsei Multipack Vietnam Co., Ltd (based in Binh Xuyen Industrial Park) invested in new machinery, equipment and technology; improved labor quality, increased production efficiency, diversified raw material sources; established a business structure with local workers and advanced equipment systems to quickly meet customer needs with the motto "Japanese quality, globally competitive prices, on-time delivery anywhere in the world.”

The VAT tax reduction has helped the company with more financial space and easing pressures from bank loans to stabilize production and maintain jobs for nearly 700 workers. To achieve the growth target in 2023 and take care of employees' livelihoods and retain workers, the company continues to build a product structure suitable to customers' needs; upgrade modern machinery and advanced technology to sharpen competitiveness in the market in terms of price, design and product quality.

CNCTech Group Joint Stock Company and PNX Group - a real estate and financial group from South Korea signed a strategic cooperation agreement on development of Nam Binh Xuyen Industrial Park, increasing the former’s total industrial land fund to 500 ha in Vinh Phuc province to build a modern, green industrial park to meet high requirements from world-leading manufacturers. At the same time, this also marked its development in the midst of difficulties and challenges.

CNCTech Group was established in 2008. After 15 years of operation, CNCTech has become one of prestigious Vietnamese brands of supporting industrial manufacturing, industrial infrastructure services and technological industry. With 18 member companies and affiliated companies, CNCTech Group is engaged in many key industries such as manufacturing electronic equipment, precision engineering and oil and gas production equipment; manufacturing automation lines; and developing industrial infrastructure. Currently, CNCTech has cooperated with many large tech firms in the world to provide comprehensive infrastructure and integrated production solutions to catch the new wave of production expansion to Vietnam. The group has cooperated with large domestic and international logistics firms to take part in the global value chain in a bid to create sustainable competitive advantages for businesses.

To achieve and exceed its growth target in 2023, CNCTech Group has prioritized investment in technology application, new product development and production optimization; developed many technology chains such as CNC machining technology, high precision casting technology, surface treatment technology and automation; collaborated with many large technology partners to launch mass production of modules and integrated technology products to catch the wave of foreign businesses flowing to Vietnam.

To complete and exceed its targets and goals in 2023, Vinh Phuc has introduced many solutions to support companies to deal with their difficulties in production; accelerated the progress of infrastructure construction in industrial parks to create a good environment and premises for businesses to expand production. At the same time, companies have actively cooperated to consume products of each other and create overall strength to take on big orders. Therefore, they have joined supply chains led by foreign firms and giant corporations to expand production output.

By Tran Trang, Vietnam Business Forum