Many industrial enterprises across Da Nang have been ramping up production and expanding scale to meet rising export orders in the coming time.

Workers are seen at the Central Seafood Import-Export JSC. Photo: VAN HOANG

Accelerating production

According to the financial report by the Da Nang Rubber JSC (DRC) in the second quarter of the year, the company’s net revenue stood at VND1,364 billion, up 17% compared to the same period in 2023. This has been the highest quarterly revenue since its operation. DRC earned a profit of VND77.4 billion in the second quarter of 2024, an increase of 52% over the same period, after deducting all production costs.

In the first haft of the year, DRC's revenue reached VND2,300 billion, up 3% and its profit was VND127 billion, a rise of 66% in comparison with the same period. Compared to its yearly plan, the company fulfilled 46% of revenue targets and 56% of profit targets respectively.

Mr. Le Hoang Khanh Nhut, General Director of DRC, said that the abovementioned positive results were mainly attributed to the company's new product lines such as LTR and PCR tires, thereby creating its own competitive advantage.

In particular, the company completely replaced imported rubber with domestic rubber sources to produce Radial car tires, contributing to being proactive in making production plans and significantly reducing product costs.

In addition, DRC is investing in the third stage of a project on expanding radial tyre manufacturing factory. Once completed in late 2024, the project is expected to raising the factory’s annual capacity to 1,200,000 tires from 900,000 tires.

Meanwhile, Mr. Nguyen Van Hai, General Director of the Hoa Tho Textile and Garment JSC, informed that in the first half of 2024, the Hoa Tho's consolidated revenue was estimated to generate VND2,286 billion (about US$90 million), representing 51% of the year plan. It earned an estimate of VND142.7 billion in profit, reaching 65% of the year plan. Its export turnover reached US$113 million, equivalent to 46% of the year plan.

Compared to the original 2024 revenue plan of VND4,500 billion and pre-tax profit of VND220 billion, Hoa Tho adjusted to increase its profit plan by VND262 billion in mid-July.

To achieve the freshly-adjusted goal, the Hoa Tho JSC continues to focus on expanding the market to ensure stable production and high-quality orders for factories; preparing well the conditions to expand new markets in the U.S. and Europe; investing in modernity and high automation; and using green energy to realise greening goals according to the set roadmap.

When recognising positive signals with the number of orders signed until late the third quarter of 2024, the Vinatex Da Nang JSC is rolling out solutions to achieve and exceed the total sales revenue target of VND710 billion in 2024.

According to Mr. Ho Hai, General Director of the company, said that the company continues to implement the Phu My garment factory expansion project, and complete procedures for the My Chanh garment factory project, both in Binh Dinh Province.

In addition, the company will monitor market demand to promptly structure product categories and exploit sufficient sources of goods for factories throughout the system. Heed will be on developing and organising the synchronous assessment of social responsibility standards for factories, meeting the requirements of greening production.

Production activities at the Da Nang Rubber JSC. Photo: M.Q

Continue to support production

According to the municipal Department of Industry and Trade, production and business activities of economic sectors in the city have been regaining growth momentum.

Some businesses have sought orders and signed product consumption contracts, contributing to promoting the recovery of the industrial production sector.

The city's industrial production index between January and June rose by 3.75% compared to the same period in 2023, of which, the processing and manufacturing industry increased by 3.5%; electricity production and distribution 14.56%; and water supply, and wastewater management and treatment activities 0.32%. The mining industry alone decreased by 31.5%.

The city is carrying out relevant procedures to establish the Hoa Lien Industrial Cluster; promulgating a set of criteria for selecting investors to build technical infrastructure for the Hoa Nhon Industrial Cluster; and completing procedures for selecting investors for the project of building and trading infrastructure for the Hoa Cam Industrial Park at phase 2.

Mr. Tran Van Ty, Deputy Head of the Management Board of Da Nang Hi-Tech Parks and Industrial Parks, said that, during the 6-month period, the Management Board granted construction permits for 11 projects; inspected completed construction items of 9 projects; and appraised feasibility study reports of 3 projects.

Ms. Le Thi Kim Phuong, Director of the municipal Department of Industry and Trade, said that her unit will continue to support businesses in association with the supporting industry development policy according to the municipal People's Council’s Resolution No. 53 with a focus support on processed and manufactured products; smart factory development for businesses; and seeking product output markets and raw material supply markets for processing and manufacturing industries, thereby  promoting growth in both production and export for commodity industries bit by bit.

The Department also encourages and supports businesses to look for domestic raw material supplies, participate and form domestic production supply chains to diversify supply sources, especially increasing added value for processing and manufacturing industrial products, thereby creating production stability and increasing product competitiveness.

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