Da Nang’s index of industrial production (IIP) is continuing its positive growth pace in May compared to the previous month and the same period last year. According to local businesses, the production situation has more positive signals than in previous months.

The Thuan Phuoc Seafood and Trading Corporation maintains stable production with the number of orders signed until late 2024

Stable order numbers

The Asia Architecture and Trading Co., Ltd based in the Hoa Khanh Industrial Park, Lien Chieu District, specialising in manufacturing industrial packaging paper, cartons and colour boxes, has a stable number of orders until the end of 2024.

The company's revenue in the first five months of 2024 reached about VND167 billion, up 5% over the same period, representing 44% of the year's revenue plan (VND380 billion). A combined total of 12,000 tonnes of products were produced during the five-month period.

According to Director of the company Ha Ngoc Thong, the company recorded strong revenue growth in the first quarter of the year for the first time due to a stable number of orders as well as its increased recruitment of labour to satisfy partners.

Recently, the company has spent nearly VND30 billion on purchasing two offset printing machines, aimed at meeting G7 and GMI standards - a standardised system that brands use to evaluate the quality and consistency of printing products. After machinery investment, the company's products are of better quality, meeting the increasing requirements of the market.

In the coming time, the company expects to invest about VND15 billion in software costs to automate new machines, thereby improving productivity and targeting high-end markets such as the US and Europe.

Mr. Thong assessed that the production situation of the paper and packaging industry is generally relatively positive, which was only affected by the increase of the price of input paper materials by nearly 20% over the past 2 months. The company increased production to compensate for raw material costs thanks to the stable number of orders.

Similarly, the Huynh Duc Trading - Service and Production Co. Ltd., located in the expanded Hoa Khanh Industrial Park, Lien Chieu District, poured VND70 billion into machinery and vehicles in 2023.

Mr. Lam Phung Ut, CEO of the company, said that the modernisation of machinery and equipment helped the company reduce production costs, and improve working conditions for workers. This expects to increase the production capacity of components and parts for assembling cars, motorcycles, machinery and equipment to 3,000 tonnes/year, as well as attract labor resources and promote the development of other industries.

Currently, the company has received orders until September 2024 in Da Nang, and the provinces of Quang Nam, Quang Ngai, and Thua Thien Hue.

Meanwhile, the Thuan Phuoc Seafood and Trading Corporation continues to maintain stable production with the number of orders signed until late 2024. In the first quarter of 2024, the company earned VND647.2 billion in revenue, a rise of VND156 billion, equivalent to an increase of 32% over the same period.

Mr. Tran Van Linh, Chairman of the Board of Directors of the Corporation, said that shrimp exports to markets showed signs of recovery because importers' inventories have decreased, so import demand has begun to return. However, costs of sales and raw materials are still high, so profits decrease.

Workers are seen working at the Asia Architecture and Trading Company Limited based in Hoa Khanh Industrial Park, Lien Chieu District. Photo: M.Q

Growth of many manufacturing industries

According to a report released by the Da Nang Statistics Bureau, the city’s IIP in May 2024 went up 4.1% over the previous month and 1.9% compared to the same period in 2023.

Some industries witnessed a fairly high increase in the IIP compared to the same period in 2023. In particular, the IIP of rubber products rose by 35.9%; other means of transport 32.2%; beverage 27.8%; textile 24.4%; and beds, wardrobes, tables and chairs 21.6%.

In the first 5 months of 2024, the IIP increased by 2% compared to the same period in 2023, of which three-fourths of level 1 industry groups had positive growth. In particular, the production and distribution of electricity, gas, hot water, steam and air conditioning went up 15.6%; processing and manufacturing industry 1.3%; and water supply, waste management and treatment activities, and wastewater 0.7%.

With the role of leading the growth of the entire industry, some industries in the processing and manufacturing field recorded high growth rates, including textile with a rise of 41.9%; products from rubber and plastic 24.7%; beverage 24.4%; and beds, wardrobes, tables and chairs 19.2%.

The index of main industrial products increased, such as metal prefabricated housing components (11805%); woven fabrics from cotton fibers with a cotton density of 85% or more (81.9%); and frozen fish and meat (38%), making a major contribution to the growth of the entire industry.

The consumption index of the entire processing and manufacturing industry rose by 2.1% over the same period, of which, the industry groups with high consumption levels were machinery and equipment production not yet classified up 206.5%; textile 58.5%; and beverage 29.4%.

Mr. Nguyen Van Tru, Deputy Director of the municipal Department of Industry and Trade, said that many businesses have signed product consumption contracts in the coming time, contributing to promoting the recovery of the industrial production sector in the area. This is one of the positive signs that help the industry restore production capacity after a long time.

To continue to support businesses as well as promote industrial production, the department has advised the municipal People's Committee on adjusting investment policies for a project on auxiliary area serving Da Nang High-Tech Park; completing the management, operation and exploitation plan; and receiving business investment registration documents at the Cam Le Industrial Cluster.

Reporting by MAI QUE - Translating by M.DUNG, P.TRA