Hundreds of millions of dong of funding from the Da Nang Industrial Promotion Programme has been provided for rural industrial enterprises and households in a bid to help them promptly improve the efficiency of production activities.

A worker operates an automatic edge banding machine at the P.A.D Art Design JSC. Photo: TRAN TRUC

Innovation for market fit

To meet export demand, the Hoa Binh Carton Packaging Production Lo., Ltd, based in the Hoa Cam Industrial Park, Cam Le District, has purchased a VND3.8 billion 4-colour Flexo printer, of which VND300 million has been from industrial promotion capital.

Previously, the company used screen printing entirely by hand, so it required many workers to operate.

Meanwhile, the newly-bought equipment helps the company minimise labour costs, ensure workers' labour safety, shorten the production process, and integrate 4 functions (printing, pressing, slitting, die-cutting) in the same operating process.

Along with that, the purchasing of 4-color Flexo printer can help the company reduce up to 90 tonnes of waste products on an average.

Mr. Vo Thanh Son, Director of the Hoa Binh Carton Packaging Production Co., Ltd, informed that his company exported an annual average of 900 million products to foreign markets, mainly in Europe and the US.

He highly lauded the municipal Department of Industry and Trade for its prompt support and active companion with his company in the context of general difficulties of the global economy.

From the industrial promotion capital in 2023, the U&I Phuong Quan Production Trading Company Limited based in Duong Son Village, Hoa Chau Commune, Hoa Vang District has been provided with VND441 million of funding to invest in a new pressed charcoal production system.

The system comprises two-tonne sawdust machine, sawdust cage floor, 1-tonne sawdust dryer, sawdust firewood press, and auxiliary equipment.

The VND 2.2 billion system has a continuous burning time of 3-5 hours, 3-4 times longer than normal charcoal. This helps save time changing coal and the quantity of used coal, and do not interrupt meals causing inconvenience to customers.

Mr. Phan Duy Phuong, Deputy Director of the company, said the product is consumed very well because of the hike in demand for clean eating or from restaurants.

He added that his company produced about 50 tonnes of coal each month but this is still not enough to meet demand. Therefore, the company plans to double its production capacity by 2024.

Similarly, the P.A.D Art Design JSC, located in Phu Hoa 1 Village, Hoa Nhon Commune, Hoa Vang District, received VND265 million of funding from industrial promotion capital and invested in an automatic edge banding machine with a total cost of VND919 million.

With the new equipment, the products produced by the unit save over 60% of processing time and labor in all stages until the output product is completed.

Largest amount of capital compared to previous years

The aforementioned companies are among the 9 rural industrial production enterprises and facilities receiving financial support to buy machinery and equipment in the first phase under the 2023 Da Nang Industrial Promotion Programme.

Mr. Le Thanh Ha, Director of the Center for Industrial Promotion and Trade Promotion, said that this year, the approval process for projects is still slow, so beneficiary units face many difficulties in understanding and signing contracts to purchase machinery and equipment with suppliers.

In addition, although the installation of machinery and equipment has been completed, beneficiary businesses still have difficulty finding input materials and handling product output.

According to the municipal Department of Industry and Trade, a total of VND 4.5 billion from the budget of the industrial promotion programme in 2023 has been used to support local enterprises, a rise of VND1.5 billion compared to previous years.

The Department has given a helping hand to businesses to invest in machinery and equipment, register exclusive trademarks, consulting on design and packaging, and participate in exhibitions to promote the commercial market.

​Reporting by TRAN TRUC - Translating by M.DUNG