Facilitating Development of Key Industrial Products

1:06:32 PM | 2/3/2021

Facing the impact of the COVID-19 epidemic, enterprises producing key industrial products in Hung Yen province have proactively implemented many solutions to overcome difficulties, actively innovated technology, expanded the market, maintained growth momentum, and positively contributed to local socio-economic development.

According to the report of the Department of Industry and Trade, the industrial production index in 2020 was estimated at 107.06%, of which: the exploitation industry reached 107.35%; processing and manufacturing industry reached 107.00%; production and distribution of electricity, gas, hot water, steam and air conditioning reached 110.25%. The value of industrial production (constant prices in 2010) was estimated at VND 207,436 billion, up 1.7 times compared to 2015 (in 2015 it was only VND 124,621 billion). The average industrial production index in the 2016-2020 period reached 10.0%. Thus, the index of industrial production has achieved the target set by the Resolution of the 18th Provincial Party Congress. The main groups of industrial products still maintained a good growth rate in the 2016-2020 period such as: all types of apparels increased by 15.68%, all kinds of plastic packaging increased by 17.77%, packaging using plastic substances increased by 18.09%, commercial electricity increased by 12.41%.

Due to the impact of the COVID-19 epidemic, the export turnover in 2020 was estimated at only USD 4,500 million, down 5.26% compared to 2019, but the average growth of the whole period 2016-2020 was still 12.31%/year. Although the export markets faced more difficulties to expand, the traditional markets have been basically maintained such as Japan, the EU and the United States. Especially, there have been many new export products, including supporting industrial products in the fields of mechanics and electronics. Mr. Nguyen Van Tho, Director of the Department of Industry and Trade shared: Currently, many key industrial products in the province had high added value, high technology content, using modern technology, being able to compete in domestic and international markets, ensuring production capacity and sustainable environment, creating a high growth rate. Many brands have become familiar to domestic consumers and exporters such as: Garment products of Hung Yen Garment Corporation, Global Sourcenet Co., Ltd., Kyung Viet Garment Joint Venture Company, Minh Anh Garment Co., Ltd, electronic products, refrigeration of 4P Co., Ltd., Hoa Phat Group.

At the same time, there have been more new products and projects that have the potential to bring industrial production value and higher added value in the coming period, such as: The air conditioning production project of DAIKIN AIR CONDITIONING Vietnam Joint Stock Company with a total registered investment capital of US$ 82.5 million; The project of manufacturing high quality sanitary wares and accessories of TOTO Vietnam Co., Ltd. with a total registered investment capital of USD 281 million; The factory project on manufacturing printed circuit board for electronic devices of MEKTEC MANUFACTURING Vietnam Co., Ltd. with a total registered investment capital of USD 100 million; The Sew-Components Vietnam II Factory Project (the second project of Sews-Components Vietnam Co., Ltd. in Hung Yen) on producing electrical and electronic components for cars and motorcycles with a total registered investment capital USD 64,890 million; The Project on Milk processing factory of NUTIFOOD Vietnam Nutrition Food Joint Stock Company with a total registered investment capital of over VND 1,600 billion.

In order to create conditions for key industrial products to develop and increase export value, Hung Yen province has many support mechanisms, financial incentives, science and technology, and trade promotion for enterprises manufacturing key industrial products such as: supporting lending interest rates for businesses after investment, creating conditions for enterprises to participate in domestic and foreign fairs and exhibitions to expand markets, and promote export.

As the economy is facing many difficulties, the Department of Industry and Trade continues to grasp the situation of production and business, synthesizing difficulties and problems of businesses, and advising the province to propose specific measures in order to create favorable conditions for enterprises producing key industrial products to develop.

Source: Vietnam Business Forum