In the first half of 2022, industrial production activities in Da Nang recorded positive signals thanks to the implementation of effective business support policies and the open and transparent chain of production and consumption of products.

Production activities recorded at the Sunshine aerospace components factory, developed by the US-based Universal Alloy Corporation Asia Pte. LTD-UAC, in the Da Nang Hi-Tech Park. Photo: VAN HOANG

Positive signals

2022 is the year when the municipal government and businesses are making every effort to drive the post-pandemic production and business recovery.

In the first months of the year, most of the city's key export markets such as Europe, the United States, Asia, Southeast Asia, Japan and South Korea all kept stable in terms of supply chains, thereby helping businesses maintain stable orders as well as be proactive in their production and business plans in 2022.

Mr. Nguyen Duc Tri, Chairman of the Board of Directors of the Hoa Tho Textile and Garment JSC, said that the company’s accumulated revenue in the first 5 months of 2022 reached VND 2,139 billion, up 70 % over the same period last year, and representing 51% of the 2022 plan.

Of this, the garment exports hit more than VND 1,500 billion, an increase of 85% compared to the same period in 2021, representing 52% of the year plan, whilst fashion exports increased by 21% against 2021 to reach VND 27 billion.

Textile yarn exports generated VND 542 billion, up 42% over the same period in 2021 and representing 47% of the year plan.

Similarly, the Da Nang branch of the Vinatex International JSC has recorded strong growth in recent months.

Director of the company Nguyen Chi Truc informed that in the first five months of the year, the company’s export output rose by 20% over the same period in 2021, and it is expected to increase by 10% in the next 6 months.

Meanwhile, the Da Nang Forest Products Export JSC based in the Hoa Cam Industrial Park predicts to earn US$ 4 million in revenue from October 1, 2021 - September 30, 2022, an increase of nearly US$3 million against 2021.

According to the municipal Department of Industry and Trade, the city's import and export activities continue to maintain their growth compared to the end of 2021.

The city’s total export turnover between January and June is estimated at over US$1 billion, up 20.8% over the same period in 2021.

Most of exporters involving the city’s main products have favourable business situations and abundant orders, especially textiles and seafood.

Currently, the biggest difficulty facing local import-export enterprises is a surge in input costs. The main reason is thought to be that the impact of COVID-19 and current conflicts between countries around the world have resulted in a hike in the prices of gasoline, freight, logistics and raw material prices. However, businesses citywide still try to overcome their current difficulties to complete partners' orders.

Thanks to the city-issued support policies for businesses, the city's industrial production flourished in the first half of the year. IN THE PHOTO: Workers at the Ba Sao Garment Co., Ltd based in the Hoa Khanh Industrial Park in Hoa Khanh Bac Ward, Lien Chieu District. Photo: QUYNH TRANG

Efforts to narrow the gap between policies and enforcement

According to the municipal Department of Industry and Trade, the positive signals recorded in the city’s industrial production sector were mainly attributed to the city’s efforts in narrowing the gap between policies and enforcement.

Data released by the city's Statistics Bureau, the city’s industrial production index (IIP) in the first 6 months of the year climbed by 3.07% compared to the same period in 2021.

The processing and manufacturing industry increased by 3.30%;, electricity production and distribution rose by 5.42%, and water supply and garbage treatment went up by 5.42%.

It was reported that some of the city’s key industries recorded significant growth in their production activities against the same period last year. In particular, bricks and blocks for construction was 5.6 times higher than the same period in 2021, frozen fish and meat 2.5 times higher, aircraft repair services increased by 91%, animal-shaped toys by 79%, and bottled beer by 48.7%.

In addition, the city’s labour usage index in Da Nang-based industrial enterprises in June 2022 is estimated to increase by 5.8% over the same period last year.

As accumulated in the first half of the year, the labour usage index rose by 2.3%, of which the processing and manufacturing industry by 2.6%, and electricity production and distribution industry by 7%...

Reporting by QUYNH TRANG - Translating by M.DUNG