According to the recently-revealed scenarios for Da Nang’s economic growth in the fourth quarter of 2021, industrial production is forecasted to grow up by 3 - 5.05%. Accelerating the restart of production and business activities at this time is, therefore, important because it is not only meaningful for this year but it also creates a firm premise for a better performance next year.

Da Nang will promote production and business activities from now until the end of this year to create growth momentum in 2022. Production activities are observed at the 29-3 Textiles and Garments Joint Stock Company. Photo: KHANH HOA

Completing orders in a rush

At the Matrix Vietnam Co., Ltd based in the Hoa Cam Industrial Park, Cam Le District, the production atmosphere has been quite vibrant with 95% of workers having returned to work over the past month.

Ms. Nguyen Thi Bich Hoi, the company's Human Resources Manager, said that this business is racing against time to complete orders for children's toy products for export to Europe, the U.S. and Eastern Europe.

Usually, during a few months left to the end of each year, the number of new orders increases by an average of 40 - 50% as compared to the remaining ones of the year. However, due to the adverse impacts of the COVID-19 surge, the company is giving priority to completing the previously- received orders for the time being. 

Similarly, the Bac Dau Co., Ltd headquartered in the Da Nang Fisheries Service Industrial Zone is accelerating with the full restoration of production lines.

According to Mr. Nguyen Van Chin, the company’s Director, during this ongoing peak production season, the output of the business is only over 50% of the figure recorded during the pre-pandemic time because the source of raw materials is only 30 - 40% as compared to the same period in previous years.

However, the company is still striving to maintain job security and incomes for workers and ensure the export of frozen ‘cha ca’ (fish cakes) to Japan, South Korea, Thailand and Malaysia as well.

According to a report recently released by the Da Nang Department of Industry and Trade, the city's Index of Industrial Production (IIP) in the first 10 months of this year decreased by 4.19% ass compared to the same period in 2020.

However, October itself  increased by 7.6% in October from September, showing the rapid rebound of the whole industry following the effective control of the coronavirus surge which is paving a way for production restoration.

Some industries have recorded a decrease in growth as compared to the same period in 2020 such as processing and manufacturing industry down 10%; electricity production and distribution 7.04%; water supply and waste treatment 11.3%; machinery and equipment production 38.9%; production of prefabricated metal products (except for machinery and equipment) 24.9%; the production of ready-made garments (except for apparel) decreased by 22.7%; apparel production 13.1%; toy production 10.8%; the production of paper and related items 5.5%.

However, in the processing-manufacturing industry, there are many sub-sectors recording an increase in the IIP index as compared to the same period last year, in which there were many industries with relatively high growth such as shipbuilding and floating structures increasing up by 43%; the production of rubber tubes and tyres 41.4%; woven fabrics 29.7%; beds, cabinets, tables and chairs 25.6%; gymnastics and sports equipment 23.5%; electrical equipment 22.5%; electronic products 18.6%;  milk and dairy products 20.8%;  spare parts and auxiliary parts for motor and engine vehicles 16.9%; chemicals and chemical products12.8%; leather and related products 6.9%; metal items 6.7%.

Nguyen Thi Thuy Mai, Deputy Director of the municipal Department of Industry and Trade, analysed that, in October, the COVID-19 situation in Da Nang and the southern provinces was controlled, which facilitated the circulation of goods and materials to resume, contributing an important part to helping industrial enterprises restore production to fulfil orders on schedule.

In addition, the local administration quickly deployed solutions to support production recovery and implementing the policy of ‘safely coexisting with COVID-19’ under the direction of the national government. These supportive moves helped speed up the restoration of production and growth in October in particular as well as the remaining months of 2021.

Da Nang will promote production and business activities from now until the end of this year to create growth momentum in 2022. Production activities are observed at the 29-3 Textiles and Garments Joint Stock Company. Photo: KHANH HOA

Setting the stage for 2022

Under the plan for socio-economic recovery and development in the new normal issued by the Da Nang People's Committee, in the 3 scenarios of economic growth forecast, in the fourth quarter of this year, basic industries will recover with a growth at 3%, 4.04% and 5.05% respectively. This result is based on the effective control of the pandemic and the accelerated progress of vaccine coverage in the city.

Economic scenarios also show that, if the above- mentioned growth targets are achieved in the fourth quarter, by the end of 2021, the city's industry will have avoided a deep decline in growth to log the highest decrease of only 2.51% as compared to the end of 2020. This result will serve as an important premise for the industry to recover better when entering 2022.

From now until the end of 2021 as well as entering 2022, the production activities of the industry will take place in the new normal with businesses effectively adapting themselves to the ‘dual goals’ of both production and pandemic prevention.

The local industry and trade sector plans to continuously promote the implementation of the already-issued support policies significantly benefiting the development of industry and handicrafts, promote the development of priority and supporting industries, investment projects, production and business activities across the city.

Besides, heed will be paid to effectively implementing programmes and plans on international economic integration, with a focus on new-generation free trade agreements to assist local exporters in increasing their competitiveness in the city’s main export markets including EU, the U.S. and Japan.

Reporting by KHANH HOA – Translating by ANH THU