Da Nang’s industrial production in the first two months of 2022 recorded a growth of 1.29% as compared to the same period in 2021, and in February alone, the figure climbed to 6.63% from January 2022.

Industrial production in Da Nang has recorded a good growth, contributing to the city’s socio-economic development. Workers are seen being on duty at the Daiwa Vietnam Co., Ltd based in the Hoa Khanh Industrial Park, Lien Chieu District. Photo: KHANH HOA

Sharp increase in consumption of key industries

As reported by the Da Nang Department of Industry and Trade, with a growth of 1.29% from the same period in the first two months of 2021, the city’s industrial production in the city began to rebound.

In particular, the processing and manufacturing industry recovered strongly with a positive growth of 7.24% in February and 1.57% as accumulated in the first two months of the year as compared to the year-ago period.

Most of the key fields in the processing and manufacturing industry saw a breakthrough, contributing to the recovery of the whole industry's activities such as repair, maintenance, and installation of machinery and equipment up 36.72%; the production of motor vehicles 36.61%; leather and related products 22.2%; electronic products and computers 17.22%; rubber and plastic products 17.1%; machinery and equipment production 16.3%; other means of transport 14.5%; apparel production 6.1%.

Notably, the consumption index of the entire processing and manufacturing industry increased by as 3.69% in February 2022 over the same period, of which industries recorded a higher consumption index than the general consumption index such as the production of clothing up 64.52%, leather and leather products 29.8%; wood processing and wood products 55.7%; paper and paper products 45.4%; chemicals and chemical products by 26.3%; rubber and plastic products  35.7%.

The overall labour utilization index for the first two months of 2022 went up by 2.26% as compared to the same period in 2021, which indicates a positive recovery of the economy.

Ms. Le Thi Kim Phuong, the Director of the Da Nang Department of Industry and Trade, acknowledged that, after the Lunar New Year holiday break, the production and business activities of enterprises have basically returned to normal.

 The fact that employees have been fully vaccinated against COVID-19 helped businesses confidently restore all operations and seek new orders to boost production and export performances has led to a positive growth of the whole industry in the first two months of this year.

However, the growth rate was not uniform across industries as there were still a number of industries with sharp declines such as wood processing and the production of wooden products down 43.4%; beverages 23.8%; textiles 18.7%; beds, cabinets, tables and chairs 16.1%; chemicals and chemical products11.2%; metals 9.8%.

The production performance is observed at the Apple Film Co., Ltd based in the Hoa Cam Industrial Park, Cam Le District. Photo: KHANH HOA

Taking more supportive solutions for businesses

According to the Da Nang Statistics Bureau, import and export activities has continued to maintain growth. The total import and export turnovers in the first two months of the year were estimated at US$525.6 million, up 23.6% as compared to the same period last year. Of this, exports were worth around US$ 322.2 million, up 43.2%, and imports were worth close to US$ 203.5 million, up 1.6%.

The balance of trade in goods maintained a trade surplus of US$118.7 million

Thanks to trade promotion, administrative reform on customs procedures, and importantly, the great efforts exerted by businesses in actively looking for partners and the promotion of export orders has created momentum for import and export activities in the city to maintain a good growth as compared to the same period last year.

On the part of the business community, 2022 is viewed as the year of efforts and determination to restore production and business activities, which suffered many impacts imposed by the complicated COVID-19 pandemic over a long time.

Even in the first months of this year, the production and business situation in most of the city's key export markets such as Europe, the U.S., Asia, Southeast Asia, Japan, and Republic of Korea (RoK) all remained stable supply chains, thereby helping businesses maintain stable orders as well as be proactive in their production and business plans in 2022.

As revealed by Mr. Phan Ngoc Can, the Deputy Director of Duy Thanh Handicraft Export Co., Ltd., an enterprise specialising in the production of bamboo and rattan handicraft products for export to the European, the U.S and Japanese markets, at present, the demand of the aforementioned countries and regions is quite large, helping his firm ensure the supply for the products.

In 2021, it was estimated that the business earned about US$10 million in revenue.

With sales reaching 100% of the initially-set plan in the first two months of the year, the production and business activities at the Da Nang Mabuchi Motor Company based in the Hoa Khanh Industrial Park, Lien Chieu District have seen a good performance. Till date, the company's products have sought berths in foreign markets worldwide.

According to Mr. Pham Truong Son, the Head of the Management Board of Da Nang Hi-Tech Park and Industrial Zones (DHPIZA), in the coming time, his agency will continue to carry out more highly practical activities to support foreign experts to work in the city’s Hi-tech, concentrated IT parks and industrial zones.

Notably, the Da Nang administration has recently adopted Resolution No. 63/2021/NQ-HDND on offering reductions on infrastructure use fees for enterprises financially affected by COVID-19 to lease or sub-lease land in the Da Nang Hi-Tech Park and IPs.

Enterprises that are eligible for the above-mentioned supportive schemes must be operating ones, excluding those that have ceased operations or are undergoing procedures for dissolution and bankruptcy.

In detail, a 50% reduction of infrastructure use fees in 2021 is set for businesses that lease or sub-lease land in the Da Nang Hi-Tech Parks and IPs in the city.

Particularly for enterprises operating in the expanded Hoa Khanh and Lien Chieu IPs, the Sai Gon - Da Nang Investment Corporation offers them a 25% subsidy on the use of infrastructure whilst the remaining 25% is supported by the city budget.

Reporting by KHANH HOA – Translating by A.THU