With the leading role in the growth of Da Nang's industrial sector, the processing and manufacturing industry is showing positive signals. The products of the industry not only meet the increasing and diverse consumption needs of the domestic market, but also contribute to promoting the local export turnover.

Production activities at the Daiwa Vietnam Co., Ltd. based in the Hoa Khanh Industrial Park, Lien Chieu District. Photo: M.Q

Enterprises boost production

As recorded on September 18, more than 3,500 workers at three factories of the Daiwa Vietnam Co., Ltd. based in the Hoa Khanh Industrial Park, Lien Chieu District, worked hard to serve export orders at the end of 2024. The company has just invested in many machines worth tens of billions of VND to optimize productivity and enhance the efficiency of production stages.

Mr. Nguyen Van Phu, Director of the company, informed that the company sets a target of earning about US$ 100 million in revenue. The value of the company's signed contracts has to date been US$ 90-100 million, so the possibility of achieving and exceeding this year's revenue target is completely positive.

This happy result is thanks to the stable production activities and increased consumption in the company's traditional markets. Up to now, the company has signed orders for the first quarter of 2025 and expects the revenue target for 2025 to increase by 10-15% compared to the company's actual revenue in 2024.

To meet the increasing orders, the company plans to recruit additional 300-400 workers in the coming time.

Also at the Hoa Khanh Industrial Park, the A Chau Architecture and Trading Company Limited has just invested in software to automatically operate new machines, thereby improving productivity and targeting high-end markets such as the U.S. and Europe.

According to Director of the company Ha Ngoc Thong, the company’s revenue in the first 8 months of 2024 rose by about 5% compared to the same period in 2023 and reached approximately 72% of the annual revenue plan (VND 380 billion). The result was mainly attributed to the company's investment in two offset printing machines worth VND 30 billion in total since the beginning of 2024. Thanks to the investment in machinery, the company's products have better quality, meeting the increasingly high demands of the market.

Meanwhile, the accumulated net revenue from sales and service provision of the Danapha Pharmaceutical JSC had reached VND 284.3 billion, up nearly 7% compared to the same period in 2023, as of June 30, 2024.

Currently, Danapha's products are exported to over 20 countries in Europe such as Russia, Uzbekistan and Bulgaria, and in Southeast Asia.

Mr. Le Thang Binh, General Director of Danapha, said that along with the plan to expand the export market to Southeast Asia, Japan and South Korea in the years ahead, the company has been focusing on researching and developing products, and searching for new technologies and innovations to create high-quality products meeting EU-GMP standards (Good Manufacturing Practice according to European standards). To realise its target, the company is speeding up the construction progress of its new pharmaceutical manufacturing plant, and high-tech research and development centre, in the Da Nang Hi-tech Park.

An employee is seen working at the A Chau Architecture and Trading Company Limited based in the Hoa Khanh Industrial Park, Lien Chieu District. Photo: M.Q

Positive trends in the processing and manufacturing industry

According to the Da Nang Statistics Office, the city's index of industrial production (IIP) in August 2024 edged up 3.8% compared to the same period last year, of which the processing and manufacturing industry rose by 5.1% year-on-year.

During the 8-month period, the IIP of the city’s entire industry went up 4.3% against 2023. Three quarters of the first-level industry groups had positive growth. Specifically, the production and distribution of electricity, gas, hot water, steam and air conditioning reported a 12.8% increase; the processing and manufacturing industry 4.2%; and the water supply, and waste and wastewater management and treatment 3.5%.

According to the General Statistics Office, the manufacturing and processing activities have shown positive signs of recovery. In the first 8 months of 2024, the machinery and equipment repair, maintenance and installation increased by 52.5%; the textile industry by 40.6%; the machinery and equipment manufacturing by 17.4%; and beverage production by 15.9%.

Many processing and manufacturing enterprises have regular and stable consumption orders. Enterprises rebalance production volume on actual orders, so the inventory level of goods tends to decrease and consumption increases.

In August 2024, the consumption index of the entire processing and manufacturing industry rose by 8.9% compared to the same period in 2023. The consumption index of the entire processing and manufacturing industry in the first 8 months of 2024 went up 4.3% compared to the same period, in which, some industries with high consumption indexes contributed to the overall increase. In particular, machinery and equipment production inched up 202.3%; textile 32.4%; production of rubber and plastic products 22.2%; and production of paper and paper products 9.1%.

Ms. Le Thi Kim Phuong, Director of the municipal Department of Industry and Trade, said that in order to promote industrial production in general and the processing and manufacturing industry in particular, the unit continues to implement policies to support enterprises in technological innovation, and improve competitiveness to meet the increasingly high requirements of the export market.

Also, the department continues to encourage city-based enterprises to access and apply clean, environmentally friendly production technologies; as well as support businesses in finding domestic sources of raw materials and forming domestic production supply chains to diversify supply sources, especially increasing added value for processed and manufactured industrial products, thereby creating stable production and increasing the competitiveness of products.

In the immediate future, the municipal Department of Industry and Trade will implement industrial promotion activities, and support rural production establishments in converting production lines and equipment by the end of 2024. Heed will also be on assisting businesses with building and registering trademark protection to facilitate the promotion of domestic consumption.

Reporting by MAI QUE - Translating by M.DUNG