Thanks to promoting advantages in combination with the implementation of mechanisms and policies to encourage and support investment attraction, industrial production in Da Nang in 2022 maintained its growth momentum, greatly contributing to the completion of the city's socio-economic development goals.

Workers are seen producing garments at the March 29 Textiles and Garments JSC. Photo: Q.TRANG

Efforts to overcome difficulties

According to the municipal Department of Industry and Trade, in 2022, industrial production activities in the city recovered and recorded positive results. The total added value of the whole industry in 2022 climbed by 8.9%, contributing 9.88% to the hike in total added value of the whole economy. The Index of Industrial Production (IIP) in 2022 rose by 9.05% compared to 2021.

Specifically, the processing and manufacturing industry increased by 8.09% compared to 2021, being the growth engine of the industry; the electricity production and distribution 13.76%; and the wastewater supply, management and treatment 28.07%. Meanwhile, the mining industry alone slightly decreased by 0.02%.

However, there were still some difficulties in the industry such as labor shortage, rising input material costs, high transportation and logistics costs and others, all affecting the growth rate of the city’s industrial production.

The processing and manufacturing industries gradually resumed supply chains with increased product output and new orders. Enterprises made every effort to access capital and improve production and business capacity.

A number of industries achieved good growth in 2022, significantly contributing to the overall growth of processing and manufacturing industries such as beverage production; manufacturing of leather and related products; prefabricated metal production; and manufacturing other means of transport.

Besides, the IIP index of some industries decreased over the same period such as manufacturing of beds, cabinets, tables and chairs; manufacturing of chemicals and chemical products; and textile industry.

The main industrial products with a strong increase in volume in 2022 include frozen shrimps, sports shoes, bricks and blocks, and ready-mix concrete.

There were still a number of industrial products whose output decreased deeply such as woven fabric from cotton yarn; face towels, bath towels; and knitted clothes for adults.

Mr. Huynh Van Chinh, Chairman of the Board of Directors of the March 29 Textiles and Garments JSC, said that in 2023, the domestic and international markets will continue to face many challenges in terms of inflation and rising raw material prices.

Till date, the company still has enough orders to maintain production. However, most of them are small scale and low prices, while the quality requirements are stricter.

Faced with these difficulties, the company prioritizes ensuring job security for employees, keeping the reputation, improving its position in the supply chain better, adjusting the production plan flexibly, and taking advantaging of opportunities as soon as the market recovers.

A production worker at the Ha Giang Phuoc Tuong Mechanical JSC. Photo: Q.TRANG

Active support for businesses to recover and grow

Director of the Da Nang Department of Industry and Trade Le Thi Kim Phuong acknowledged that the recovery of the industrial sector reached about 90% compared to 2019 due to a number of industries continued to face difficulties and could not recover.

The industry and trade sector has set a target that the industrial production index in 2023 will increase by 5-6% compared to 2022, posing many challenges in the context of general difficulties around the world as well as in Viet Nam.

2023 is designated as "the Year of focus on unleashing resources, attracting investment, maintaining economic growth and ensuring social security" and the city sets the target of gross regional domestic product (GRDP) in 2023 to increase by 6.5-7%.

In particular, the industry and trade sector has set a target that its IIP in 2023 will increase by 5-6%, the total retail sales of goods will rise by 8-9%, and the export turnover of goods will jump by 6-7% against 2022.

To achieve this goal, in 2023, the municipal Department of Industry and Trade will synchronously implement 6 groups of solutions. Included are a group of solutions on main directions, implementation of projects and plans of the industry; policies to support enterprises in industrial and handicraft production activities; policies to support enterprises in domestic trade activities; and support policies to promote import-export activities and international economic integration. In particular, these solutions focus on supporting businesses to recover and grow strongly.

Specifically, the department will advise the city to issue a resolution on policy to support the development of Da Nang’s typical products and a resolution on policy to support economical and efficient use of energy in the city during the 2021-2030 period.

The industry and trade sector shall review and build the infrastructure system of industrial zones and clusters to ensure the land fund for attracting investment in the city’s supporting industries and priority industries.

Importance will be attached to speeding up the construction of new industrial zones and clusters, creating favourable conditions for enterprises to access support policies on loans, land, taxes, fees and labor, and effectively implementing supporting industry development policies and industrial promotion projects.

Reporting by QUYNH TRANG - Translating by M.DUNG