At the end of the year, many businesses operating in Da Nang are increasing production and setting business targets for 2023 in a bid to achieve the best results in the year to come.

Enterprises strive to produce and set business targets in 2023. IN PHOTO: Engineers working at the SMT high-tech electronics manufacturing and assembly factory located in the Da Nang Hi-Tech Park. Photo: M.QUE

Technological innovation to catch up with market demand

In mid-December 2022, the Da Nang Rubber JSC (DRC) received a financial support package worth VND 670 million from the city’s Department of Science and Technology in order to purchase equipment for technological innovation under the ‘Automatic chemical weighing system’ project. The project contributed to increasing productivity and product quality and meeting the company's increased production demand in the coming time.

The automatic chemical weighing system is assessed to have a high degree of automation, accuracy and modernity, thereby contributing to increasing productivity, enhancing product quality, reducing environmental impact, controlling chemical safety and protecting workers' health as well.

Mr. Le Hoang Khanh Nhut, General Director of DRC said that in 2022, his company faced a surge in the cost of raw materials such as synthetic rubber and chemicals, and a fierce competition from other brands.

He, however, said that thanks to the improvements in technology and production lines along with the active support from the municipal government, his company’s revenue reached VND 5,200 billion in 2022. Of this figure, the export value saw a 15-20% year-on-year increase to hit US$130.

General Director Nhut revealed the company set next year’s target of exceeding 2022’s revenue by about 10%. To do this, DRC will focus on strengths in the truck and passenger car tire segments, increase exports to the Americas market, and continue to maintain partnerships with its partners in more than 40 countries worldwide.

In the last days of the year, the Asia Architecture and Trading Co., Ltd based in the Hoa Khanh Industrial Park, Lien Chieu District, continues to make efforts to seek orders for workers to stabilize production.

Most recently, the enterprise has invested in new and more modern technologies in order to compete with domestic businesses. Therefore, although there was a decrease in orders in mid-2022, the company quickly recovered during the second half of the year.

Mr. Ha Ngoc Thong, Director of the company, said during the time when orders were falling, the company quickly rearranged and reorganized production to save production costs.

Hopefully, from now until the end of the lunar year, the company will achieve its highest productivity so as to ensure the lives of workers, he added.

Production activities at the Da Nang Rubber JSC. Photo: M.QUE

Industrial production index rose by 9.05%

Currently, a number of enterprises based in the city’s industrial parks are increasing production to serve year-end orders, including the Daiwa Vietnam Co., Ltd., the Fujikura Automotive Co., Ltd., and the Les Gants Vietnam Co., Ltd. They are striving for the highest production and business results in 2022, creating production momentum for 2023.

According to information released by the municipal Department of Industry and Trade, in 2022, industrial production activities in the city well recovered and tended to be positive.

The total added value of the whole industry climbed by 8.9%, contributing 1.47 percentage points to the increase in the total added value index of the whole economy, with a contribution proportion of 9 ,88%.

The index of industrial production (IIP) in 2022 rose by 9.05% compared to 2021. In which, the processing and manufacturing industry increased by 8.09%; electricity production and distribution by 13.76%; and water supply, and waste and water waste management and treatment by 28.07%. Meanwhile, the mining industry alone witnessed a slight decrease of 0.02%.

However, some difficulties, including labor shortage, rising input material costs, and high transportation and logistics costs, significantly affected the growth rate of industrial production.

The assessment made by the Department of Industry and Trade shows that the recovery of the industrial sector was about 90% compared to 2019, as a number of industries continue to face difficulties and cannot recover such as textiles, wood processing, production of other means of transport, production of chemicals and chemical products.

Pointing out intertwined advantages and difficulties in 2023, Director of the Department of Industry and Trade Le Thi Kim Phuong said that in the coming year, the city’s industry and trade sector will deploy a handful of solutions to support and facilitate city-based enterprises to approach support policies on loans, land fees, taxes and labor.

Additionally, greater efforts will be made to promptly remove difficulties and obstacles for boosting production and business activities in the city.

At the same time, importance will be attached to proposing solutions to ensure that ongoing projects, especially large-scale ones, will come into operation on schedule, thereby contributing to the city's industrial growth.

According to the Authority of Da Nang Hi-Tech Park and Industrial Parks, production and business situation of most enterprises in industrial parks basically stabilized. However, there are still some businesses facing difficulties due to reduced orders, forcing to reduce working time or reduce labor at the end of the year.

Deputy Head of the Authority Nguyen Cong Tien said that in the coming year, the unit will carry out a wide range of investment promotion activities, as well as propose and implement policies to support enterprises’ production and business activities and improve their workers' lives.

Furthermore, the Authority will perfect and submit a project on calling for investment for the Hoa Nhon, Hoa Nhon and 2^nd phase Hoa Cam industrial zones, and Da Nang Hi-Tech Park’s Supporting Industrial Park for the municipal People’s Committee for consideration and approval.

Reporting by Q.TRANG, M.QUE - Translating by M.DUNG