In its efforts to restructure the industry in the direction of step-by-step development in depth, contributing to economic restructuring associated with growth model innovation, Da Nang has kicked off many solutions on mobilizing and using capital, human resources, production technology innovation, market policies restructuring right from the stage of investment attraction.

Da Nang has implemented many solutions to support businesses to develop production. Workers are seen at U&I Phuong Quan Manufacturing Trading Co., Ltd (Hoa Khanh Industrial Park, Lien Chieu District). Photo: KHANH HOA

Improving management efficiency, promote development industry

A report on the development of the city’s industry in the 2011 - 2020 period and the future orientation of the Department of Industry and Trade shows that the city sets a target for the 2021 - 2030 period with a growth rate of added value (VA) industry reaching 12%, in detail, over 9.5%/year set for 2021 – 2025 and14.5%/year for 2026 – 2030.

The proportion of industry - construction in the city’s economic structure will reach 24 - 26% by 2025; 25 - 27% by 2030. In particular, the proportion of industry remains at 19-21% in 2021 - 2030. The labor productivity growth rate of the industry will reach 8%/year for 2021-2025 and 9%/year for 2026-2030.

The industrial structure continues to shift towards increasing the proportion of industries using medium and high technology, manufacturing high value added products, including: electronics; electrical equipment; mechanical engineering of machinery and equipment; manufacture of automobiles and means of transport; pharmaceutical production. The proportion of these sectors in the VA structure of the whole processing industry will account for over 33% by 2025, nearly 50% by 2030.

Also, by 2030, the value of supporting industries will account for about 40% of the city's processing and manufacturing industry’s VA structure, forming and developing core enterprises.

So as to achieve the set goals, Ms. Nguyen Thi Thuy Mai, Deputy Director of the Da Nang Department of Industry and Trade, the city will focus on synchronously implementing many solutions and policies, including those related to land issues, applying flexible and appropriate use of forms of land lease, land allocation and land use right transfer and meeting the requirements of premises for production.

In particular, the city will strive the land lease period of at least 20 years so that enterprises can rest assured to invest in production.

Regarding the policy on capital mobilization and use, heed will be paid to increasing attraction and improving investment efficiency in the direction of attracting large corporations with potentials in capital, technology, brands, thus contributing a lot to the budget.

As for human resource solutions, the city will take the initiative to spur vocational training and linkages with foreign countries in investing in vocational training institutions, especially occupations requiring high technical skills, especially ensuring human resources for projects that require a large number of high-tech and high-skilled workers.

Proactive business restructuring

Along with great efforts made by all levels and sectors, over the past time, many industrial enterprises have actively restructured their businesses, poured more investment into technological innovation, and expanded the scale of projects for better competitiveness. Along with that, implementing long-term development plans, meeting the increasing and demanding demands of the supply chain has also been given a priority.

The Da Nang Department of Planning and Investment, since the beginning of the year, there have been 18 projects applying for capital adjustment with the adjusted capital being increased by US$17.3 million.

Previously, in 2021, there were 18 projects had their capital increased with an additional US$30.1 million. This showed the efficiency, stability and long-term development strategy in production and business activities of enterprises, including those in the industrial sector.

Mr. Nguyen Van Phu, the Director of Daiwa Viet nam Co., Ltd, the Hoa Khanh Industrial Park said that the company has just put into operation an expanded factory with an area of 40,000m2 with a capacity of about 1,700 workers.

The company plans to expand its production scale in the next 10 years to meet increasing orders from international markets such as the U.S., Japan, Singapore, Australia, France, Germany, New Zealand and Russia.

Currently, the company's 2 existing factories cover a total of 80,000m², employ a sum of 4,000 workers and generate the average output is 3 million products/year.

Mr. Phan Duy Phuong, the Deputy Director of U&I Phuong Quan Manufacturing Trading Co., Ltd based in the Hoa Khanh Industrial Park said that, for many years, the enterprise has constantly strived to innovate and research to produce new products, both meeting the needs of partners and market predictions.

From self-manufacturing details in the auxiliary field to the mechatronics industry, now the enterprise has progressed to producing completely- finished products, an important new step for development process.

According to Ms. Nguyen Thi Thuy Mai, besides the support of the State, it is high time for businesses to increase cost savings, lower costs, quickly turn capital flows to improve production and business efficiency, take the initiative in building a compact operational structure and reasonable and efficient apparatus, ensuring the material and spiritual life of employees, actively developing market development strategies to contribute to promoting the industrial development.

Reporting by KHANH HOA - Translating by A.THU