Despite facing many difficulties when input costs increase and domestic and foreign market demand has not recovered, industrial production activities in Da Nang have shown signs of improvement, creating growth momentum from now until the end of the year.

Currently, a number of businesses in the city promote industrial production through investment expansion. IN PHOTO: Vice Chairman of the Da Nang People's Committee Tran Chi Cuong (2nd, left) and delegates visit the model of building G developed by the Murata Manufacturing Vietnam Co., Ltd. based in the Hoa Khanh Industrial Park, Lien Chieu District. Photo: MAI QUE

Restoration and expansion of production

In late August, the Murata Manufacturing Vietnam Co., Ltd. based in the Hoa Khanh Industrial Park, Lien Chieu District inaugurated the VND700 billion, 4-storey G building with a construction area of 5,486m² and a total floor area of 22,636m². This is a positive signal for expanding production scale in the context of many other businesses narrowing production and many workers being laid off.

Mr. Tsuneo Murata, Chairman of the Board of Directors of the Murata Manufacturing Group, said that the construction of additional facilities is a favourable condition for the company to take advantage of new opportunities. The building is expected to go into operation later this year and will produce wire coils for cars and electronic equipment, thereby creating jobs for hundreds of workers.

Meanwhile, the Danapha Pharmaceutical JSC-developed Pharmaceutical Manufacturing Factory and High-tech Research and Development Center project in the High-Tech Park located in Hoa Vang District has just adjusted to increase the investment area by 19,496 m². At the same time, the project progress will increase by 12 months, whilst the total investment will be raised from more than VND739 billion to over VND1,198 billion.

When the project comes into operation, it will include production lines with different drug dosage forms, and a GMP-EU standard modern research and development center.

Mr. Le Thang Binh, General Director of the company, said that profit after tax in the second quarter of 2023 went up 93% compared to the same period in 2022. Accumulated in the first half of the year, the company's net revenue reached more than VND267.5 billion, pre-tax profit of VND55.3 billion and after-tax profit of over VND44 billion.

According to Mr. Tran Van Linh, Chairman of the Board of Directors of the Thuan Phuoc Seafood and Trading JSC, despite many difficulties, the company's export situation is improving compared to the first months of the year and is expected to gradually increase from now until the end of the year.

The enterprise is increasingly working with its partners to proactively balance raw material sources, while it is making every effort to improve product quality to retain partners in traditional markets.

The city's industrial production index in August increased by 3.4% compared to the previous month. IN PHOTO: Workers are seen working at the Huynh Duc Production - Trading and Services Company Limited. Photo: MAI QUE

Continue to support businesses

According to the socio-economic report for August and the first eight months of 2023 released by the city's Statistics Bureau, after many months of stagnation, the index of industrial production (IIP) in August was estimated to increase by 3.4% compared to the previous month.

The consumption index of the entire manufacturing and processing industry rose by 3.4% against July. Some industry groups recorded good growth rates such as motor vehicle production with an increase of 28.3%; water exploitation, treatment and supply 24%; printing and copying records of all types 18.1%; beverage production 14.7%; and food production and processing 10.1%.

Some industrial products had a high increase compared to the previous month such as packaging and paper bags by 175%; knitted or crocheted adult clothing sets 73%; construction bricks and blocks made of cement, and concrete or artificial stones 37.2%.

All aforementioned positive signs show the gradual improvement of industrial production.

However, the IIP of the entire industrial sector in the first eight months of the year still decreased by 2% in comparison with the same period in 2022. The consumption index of the manufacturing and processing industry went down 3.6% over the same period. The processing and manufacturing industry inventory index inched up 27.06% over the same period.

It can be seen that despite the production growth in August, city-based businesses have encountered many difficulties from domestic and foreign factors since the beginning of the year.

For instance, high inflation in many countries has caused many items to be left in inventory, leading to a decrease in the general consumption index over the same period. Therefore, activities to support and create momentum for businesses to recover are very necessary.

Mr. Nguyen Van Tru, Deputy Director of the municipal Department of Industry and Trade, informed that his agency is preparing to organise the Da Nang Manufacturing and Processing and Supporting Industry Exhibition in 2023, deploy the voting of typical rural industrial products in 2023, and develop a plan to implement the project on environmental protection for industry and trade in the 2021-2025 period with a vision to 2030.

These plans will facilitate local industrial production enterprises to promote their products, as well as promote linkages between industrial enterprises and domestic and foreign manufacturing and assembly enterprises.

Furthermore, the department will strive to complete the management, operation and exploitation plan for the Cam Le Industrial Cluster, contributing to soon putting it into operation in order to support businesses in accessing production premises.

Reporting by M.QUE - Translating by M.DUNG