Despite facing COVID-19-triggered great difficulties, businesses operating in Da Nang have proactively taken flexible solutions and seized opportunities to speed up their production activities in a bid to drive their rapid recovery from the pandemic.

The positive recovery of production and business activities made a great contribution to the city's economic growth in the first 6 months of the year. IN THE PHOTO: Production workers at the Daiwa Viet Nam Co., Ltd based in Hoa Khanh Industrial Park, Lien Chieu District. Photo: KHANH HOA

Businesses recover production, flexibly adapt to market

As its VND 917 billion project of raising the annual capacity of its Radial truck tyre manufacturing factory to 1 million tyres in early June, the Da Nang Rubber JSC (DRC) is expected to increase the production of radial tyres by 10% by 2022 thanks to the application of high-pressure vulcanizing equipment which will shorten the curing time by 10% and raise the number of tyre radial production from 600,000 to 660,000 tyres per year.

Mr. Le Hoang Khanh Nhut, General Director of DRC expects that his company’s annual production capacity will reach between 900,000 and 1 million tyres per year in the years of 2023 and 2024 when the factory enters phase 3, helping increase the company's revenue as well as creating more jobs for locals.

With regard to the production plan, DRC flexibly shifts its focus on export markets to maintain export momentum. Specifically, DRC has two main export markets, namely Brazil and the US, accounting for 60% and 35% of the company’s export revenue in 2021, respectively.

Currently, DRC mainly pays special attention to the Brazilian market because it still enjoys tax advantages compared to other markets with competitors and the average product selling price is higher than that in the US.

Mr. Truong Hoang Nguyen, CEO of the Universal Alloy Corporation Viet Nam Co., Ltd based in the Da Nang Hi-Tech Park in Hoa Vang District said that thanks to the active support from the municipal government, the construction of the first phase of the 170 million US$ Sunshine aerospace components factory has been completed ahead of schedule.

He added, currently, the aviation industry is seeing a strong rebound from COVID 19, so his company is considering expanding the scale of investment and production activities in the near future.

Data released by the city’s Statistics Department show that, in the first half of this year, a sum of 2,257 new enterprises and affiliated units registered for their operation in the city with a total registered capital of VND13,007 billion, up by 7.1% and 14.5% in the number of enterprises and the registered capital, respectively.

Also, a combined total of 1,620 temporarily suspended businesses resumed operations in the first six months of the year, up 48.2%

During that 6-month period, city-based businesses reported strong economic recovery, thereby contributing to promoting the city’s economic development.

Workers at the Universal Alloy Corporation Viet Nam Co., Ltd based in Hoa Vang District. Photo: MAI QUE

Finding solutions for economic recovery

Since the beginning of the year, the city has actively implemented many solutions to promote economic recovery.

Special attention has been paid to solutions to support businesses, and to drive the post-pandemic recovery of such aspects as tourism, accommodation and catering services, transportation and warehousing, manufacturing and processing industries, and investment attraction.

The organisation of a series of major programmes such as the Da Nang Investment Forum 2022, and the 'Enjoy Danang Summer' Festival, has brought a breath of fresh air for the city’s economic recovery.

Besides, the municipal Department of Industry and Trade has implemented many activities to support businesses in trade promotion and seeking output for their products, as well as to stabilise the market, and accelerate the formation of new industrial zones and clusters, and the construction progress of some important projects in the city.

Chairman of the Young Entrepreneurs’ Association Le Tri Hai, said that over the past time, although businesses have faced many difficulties in production and business activities due to high input costs for production and escalating freight prices, they have still made efforts to seek more domestic and foreign orders to expand production and consumption, and stabilise production.

He, also, informed that the association has recently organised many trade connection and promotion programmes for businesses to help them seize opportunities and meet new partners to expand their business scale.

Mr. To Van Hiep, Director of the Green Lien Chieu JSC cum Chairman of the municipal Road Freight Transport Association, said that many manufacturing enterprises in the city have completed the plans for the last 6 months of the year with higher growth targets than in 2021, contributing to better meeting the demand for export activities.

Reporting by KHANH HOA, MAI QUE - Translating by M.DUNG