Most of industrial enterprises based in Da Nang have set new business goals for 2024 and at the same time expected positive signals from the market.

Production activities at the Huu Nghi Da Nang Production and Trading Joint Stock Company. Photo: M.Q

Accelerating production

The Da Nang Rubber JSC (DRC), based in Lien Chieu District, has accelerated its production activities since the fourth quarter of 2023 with improved profit margins thanks to reduced costs of raw materials such as oil-based materials, and reasonable prices of natural rubber. Also, reduced international transportation costs create favourable conditions for DRC to promote the export of Radial tires.

Mr. Le Hoang Khanh Nhut, General Director of DRC, said that the company's expected revenue in 2023 reached about 90% of the year's plan. However, positive signals from the market are an opportunity for the company to accelerate its production activities in 2024.

It is expected that the Radial tire segment will continue to grow in the near future when the third stage of the company’s radial factory will come into operation in the second quarter of 2024, helping to increase its annual capacity to 1,000,000 tires from more than 600,000.

In addition, DRC also proactively develops each strategic market segment, as well as enhances trade promotion activities in domestic and foreign markets.

Meanwhile, the Daiwa Viet Nam Co., Ltd. based in Lien Chieu District has received orders until April 2024.

Mr. Nguyen Van Phu, Director of the Daiwa Vietnam Co., Ltd., said that his company recruited 150 more workers to complete new production orders and meet its production demand.

The company's 2023 revenue only reached 70% of the plan, but more than 3,200 employees still had income and full welfare benefits guaranteed.

Based in the Da Nang Industrial Park in Son Tra District, the Huu Nghi Da Nang Production and Trading JSC is recruiting 400 more workers because of increased orders.

Mr. Mai Xuan Tu, Director of the Huu Nghi company, informed that the company earned US$ 48 million in 2023 from the production of 2.6 million pairs of high-end shoes and fashion items of all kinds for export. From the fourth quarter of 2023, the company’s received orders increase by 12% compared to before, creating excitement for workers.

Workers at the Daiwa Viet Nam Co., Ltd. based Lien Chieu District. Photo: M.Q

​Great companion with businesses

According to the socio-economic situation report in 2023 released by the municipal Department of Statistics, the added value of the entire industrial - construction sector in 2023 is estimated to decrease by 2.05% compared to 2022, but the industrial sector increased by 0.33%.

Some industries made significant contribution to the city’s industrial growth. In particular, the growth rate of mining industry was 15.75%; electricity production and distribution 7.17%; water supply, and wastewater and garbage treatment 4.58%.

In 2024, the city targets the growth rate of the industrial - construction sector to reach 6 - 6.3%, and the proportion of manufacturing and processing industry - the key industrial sector, to account for 14.5% of the total GRDP. Merchandise export turnover will go up 5-6%, and the index of industrial production (IIP) 3% against 2023.

To achieve the aforementioned goals, Mr. Tran Van Vu, Director of the Da Nang Statistics Bureau, stressed the need for the city to regain growth momentum, with a focus on rolling out solutions to maintain the pace of some manufacturing industries at a high rate such as food production and processing; and the manufacturing of electronics, computers and motor vehicle parts.

The city is laying an emphasis on promoting export markets, greatly contributing to expanding production scale for industries with low growth rate such as drug production, pharmaceutical chemistry and medicinal materials; costume production; the production of chemicals and chemical products; and the production of electrical equipment; paper and paper products, he added.

Mr. Vu noted special attention should be paid to taking many synchronous solutions to overcome difficulties in industries that are on the verge of deep decline such as wood processing; metal manufacturing and prefabrication; and other processing and manufacturing industries.

He also underlined a must-do for the city to continue to sustainably exploit its potential and resources, while at the same time properly allocating and using resources, labor, and technology.

Mrs. Nguyen Thi Thuy Mai, Deputy Director of the municipal Department of Industry and Trade, pointed out a big reason affecting industrial production was the lack of premises for establishments and businesses.

Therefore, in 2024, the department continues to advise the municipal leaders to create a new land fund, including completing the infrastructure development of the Cam Le Industrial Cluster; as well as to attract more investment in new industrial clusters.

Heed will be on supporting local businesses in promoting trade, connecting markets, and participating and forming domestic production supply chains in order to diversify supply sources and enhance added value for industrial processing and manufacturing products, thereby creating production stability and increasing product competitiveness.

​Reporting by MAI QUE - Translating by M.DUNG