Given an increase of 3.54% in the first half of this year, the Da Nang processing and manufacturing industry has maintained its stability, thus contributing to speeding up the city’s overall industrial growth over recent times.

In the first half of this year, wood processing and production of wooden products increased by 42.7% from the same period last year. Production activities are observed at the Da Nang Forestry Product Export JSC. Photo: KHANH HOA

According to a report recently released by the Da Nang Department of Industry and Trade, in June, industrial production activities in the city gradually stabilised as COVID-19 resurgence was basically put under control. Enterprises actively attracted new orders to ensure on-course production in an attempt to generate their revenues and keep their staff remaining on the payrolls in parallel. 

The Da Nang index of industrial production (IIP) in June increased by 2.41% from the same period last year, in which the processing and manufacturing industry went up by 3.36%, and electricity manufacturing and distribution climbed by 2.85%, mining rose by 12.17%, whereas water supply and waste treatment saw a decline of 8.1%.

Accumulated in the first half of this year, the city's IIP index recorded a rise of 3.79% from the year-ago period, with the processing and manufacturing industry up 3.54%.

Many production fields of the processing and manufacturing industry have recorded an impressive growth such as the production of rubber tubes and tyres (up 57.5%); spare parts and accessories for motor vehicles and engines (up 45.2%); wood processing and production of wooden products (up 42.7%); paint, varnish (up 38.1%); electrical equipment (up 29.2%); sports equipment, toys, games (up 29.4%); beds, cabinets, tables, chairs (up 24.9%); footwear (up 22.1%); electronic products (up 18.9%); paper products (up 15.1%); and metal (up 10.3%).

Since the beginning of this year, the Bac Dau Co., Ltd., has witnessed the production and export of seafood products remain stable, in face of the complicated developments of COVID-19.
According to Mr. Nguyen Van Chin, Director of the Bac Dau Co., Ltd., the company has still kept more than 300 employees on stable payrolls with each receiving a monthly income of 7 - VND7.5 million.

“For the time being, we are still receiving a stable number of orders from main export markets such as Japan, South Korea, China and Thailand. From now until the end of this year, a positive outlook is expected to be set for export activities. We do hope that the virus resurgence will be well controlled across the country and the world at large so that we can well prepare for the year-end production season,” said Mr. Chin.

In the first half of this year, the processing and manufacturing industry continued maintaining stability in production and business activities. Production activities are captured at the Bac Dau Co., Ltd. Photo: KHANH HOA

The Huynh Duc Manufacturing and Services Trading Co., Ltd specialises in manufacturing and processing industrial equipment, automation and mold processing, This is also a reliable supplier of equipment supporting production activities such as conveyor belts, tanks, tables, chairs, shelves, cabinets, trolleys, pipes, industrial kitchens and soundproof boxes.

Currently, the company is the supplier of companies operating in industrial parks in Da Nang, Dong Nai, Binh Duong, HCM City and Ha Noi as well as a number of large foreign corporations and enterprises such as Mabuchi, Nok, Nidec, Yonezawa based in Japan), Intel and Onsemi in the U.S., and Marigot and Groz-beckert in Europe.

According to an assessment report made by the municipal Department of Industry and Trade, over the past time, the structure of added value within the city's processing and manufacturing industry has continued shifting towards increasing the proportion of aspects and products with highly competitive advantages, high-tech content and added value from 25.5% in 2015 to about 30% by 2020. Included are the production of electronics, electrical equipment, mechanical engineering, machinery and equipment, the manufacturing and assembly of cars, other means of transport.

Likewise, the proportion of some other aspects and products with competitive advantages such as food processing (aquatic and dairy products) and beverages (beer and soft drinks) increased from 11.4% to about 16.5%.

In particular, the added value of the high-tech sector currently accounts for about 0.5% of the entire processing and manufacturing industry.

Reporting by KHANH HOA- Translating by A.T