Industry promotion capital has proved effectively in timely supporting rural industrial establishments to overcome difficulties and develop production in the face of impacts and complicated developments of natural disasters and the pandemic.

Workers of the Peco Food Co., Ltd are operating new equipment. Photo: QUYNH TRANG

Help to significantly enhance production efficiency

Coming to the steel wire factory of Phuc Chau Anh Trading and Production Co., Ltd located in Duong Son village, Hoa Chau Commune, Hoa Vang District, everyone was surprised with the production capacity of 3-4 tonnes of steel wire/day in the factory where there were only 5 workers.

Ms. Bach Thi My Chau, the Director of the company shared that she and her husband started their business from scratch, formerly known as Chau Anh nail production facility established in 2004.

Fortunately, this year, the company benefited from the local industry promotion fund to invest in new machines with a total value of VND 620 million.

After a trial run, the newly- invested machinery system has shown remarkable efficiency. Productivity and production efficiency increased by 3 times, saving electricity and reducing the number of employees from 12 to only 5 skilled workers who operate the machines.

It is expected that the company's revenue will increase by VND one billion per year, at the same time creating new products that meet the requirements of the growing market.

Currently, the company receives a number of large orders for 2023 and stores 10-15 tonnes of raw materials for processing. We hope that in the construction season, from February to August every year, the new machines will be at full capacity,” excitedly said Ms. Chau.

Mr. Nguyen Khoa Truong, the Director of Peco Food Co., Ltd in Nhon Tho village, Hoa Phuoc Commune, Hoa Vang District expressed his joy when receiving a beneficiary capital of up to VND 300 million to invest in a Fessmann food smoke machine.

The equipment helps products to be produced on a modern, closed processing line, monitoring optimal quality and achieving the highest productivity, limiting defective products, ensuring maximum food hygiene and safety.

In particular, it helps significantly reduce time and labor costs, promote production in large quantities, increase product competitiveness and meet market demand.

In a similar vein, the Mattress H&T Co., Ltd located in Huong Lam village, Hoa Khuong Commune, Hoa Vang District specialising in manufacturing all kinds of young latex mattresses, currently creates jobs for 30 rural workers.

The enterprise has just benefited from an industrial promotion capital of VND 300 million to invest in a foam filling machine and a rotary cutter.

Mr. Le Huu Toan, the company’s Director said that the benefit of investing in this equipment is to reduce the waste from suckers andenvironmental pollution, as well as limit raw materials inventory, save costs of loading and unloading, warehousing and transporting, produce high quality and aesthetically pleasing finished products with highly competitive prices.

“Before investing in machinery and equipment, the transportation of 150 mattress blanks from Ho Chi Minh City to the factory based in Da Nang cost around VND 40 million.

Now, when perfecting the production line at the factory, such a cost will reduce to only VND 15 million, increase revenue 3 times for the business as compared to the past.

After meeting the domestic demand, the company is aiming to expand export markets to neighbouring countries and the world at large in 2023”, said Toan.

The performance of Phuc Chau Anh Trading and Production Co., Ltd has increased 3 times since the operation of new modern machinery and equipment. Photo: QUYNH TRANG

Contributing to rural industrial development

According to the Da Nang Centre for Industrial and Trade Promotion, 8 local businesses received a total of more than VND5.22 billion dong in grants from the national and municipal industrial promotion capital sources.

The beneficiaries were Peco Food Co., Ltd, Phuc Chau Anh Co., Ltd., Mattress H&T Co., Ltd, Nhon Phuoc Mushroom Cooperative, My Phuong Food Co., Ltd., Nhien Tam Cooperative and Huong Que company and Tan Tien Phat Group JSC.

According to Mr. Le Thanh Ha, the Director of the DaNang Centre for Industrial and Trade Promotion, this year his agency did well in terms of support the application of advanced machinery and equipment, scientific and technical advances to production at businesses.

Specifically, there were timely acts of support for investment in machinery and equipment under the city’s industrial promotion and souvenir product development programme to encourage establishments and businesses to perfect their technology, improve the capacity for producing industrial products- handicrafts and tourist souvenirs as well as creating a basis for creating stable jobs for local workers, contributing to economic development and enhancing the brand name of Da Nang. 

As commented by Mr. Ngo Ngoc Truc, the Deputy Head of Economic - Infrastructure Department of Hoa Vang District, the support under the industrial promotion programme not only helps enterprises in the district develop more but it also is an important supportive act for the production facilities of typical and OCOP products here. Product quality is better when modern machinery and equipment are available.

Deputy Director of the Da Nang Department of Industry and Trade Nguyen Thi Thuy Mai assessed that annual industrial promotion support programme aims to create a push for enterprises and rural production facilities to improve production capacity. Industrial promotion projects have been well implemented by beneficiaries.

“Da Nang's industrial promotion capital is available. It is important that businesses should actively prepare feasible and effective projects for grant registrations. We is ready to provide specific instructions for eligible business to register for funding. We hope that many more feasible projects would benefit from the city's industrial promotion policy in the coming time.”, said Ms. Mai.

Reporting by QUYNH TRANG - Translating by A.THU