Da Nang’s index of industrial production (IIP) is continuing its positive growth pace, with an increase of 5.99% in the first 10 months of 2024 compared to the same period in 2023.

Production activities at the Da Nang Rubber JSC. Photo: MAI QUE

Positive results

Despite pressure from high raw material costs and exchange rate fluctuations since mid Q.3, the Da Nang Rubber JSC (DRC) completed 76% of its profit target after the first 9 months of 2024.

Mr. Le Hoang Khanh Nhut, General Director of DRC, said that in the third quarter of the year, DRC's revenue reached nearly VND 1,218 billion, up 8.4% over the same period in 2023.

Between January and September, DRC earned more than VND 3,555 billion in revenue and over VND 172 billion in after-tax profit, up 4.6% and 13.5% respectively against 2023.

Mr. Nhut expects DRC's business results will be better in the coming time with the full operation of the newly-expanded radial truck tire factory with the capacity of one million tires/year by the end of this year.

At the Hoa Khanh Industrial Park (IP), the Mabuchi Motor Co., Ltd. is testing robots in a number of processes, aiming to increase automation in the production of electronic components and small electric motors. By the end of the third quarter of 2024, the company's total production volume increased by 10% compared to the same period in 2023, and the number of products sold rose by 13%.

Meanwhile, according to a representative of the Foster Da Nang Co., Ltd. based in the Hoa Cam Industrial Park, the company's revenue in 2024 is estimated at VND 477 billion, a rise of 23% compared to 2023, surpassing the yearly plan by 7%. In particular, the production of telephone headphones and electronic components is VND471 billion, an increase of 22% against 2023; factory rental is VND5 billion. Foster Da Nang's export turnover in 2024 is likely to hit an estimate of US$ 19 million, equivalent to 11.5 million products, reaching 107% of the 2024 plan.

The company plans to expand the production of car speaker components in 2026, thereby creating more jobs for local workers.

Also at the Hoa Khanh Industrial Park, the Heineken Vietnam Brewery-Da Nang recorded a total production output of 152.4 million liters from the beginning of the year to the end of September 2024, an increase of 23.2 million liters compared to the same period in 2023, equivalent to a rise of 18%. The factory's total annual output is expected to be 211 million liters, an increase of 34 million liters compared to 2023, and equivalent to an increase of 19%.

Mr. Nguyen Thanh Phuc, General Director of the company, said that Heineken is implementing a project to expand the production capacity of the Da Nang factory from 330 million liters/year to 500 million liters/year. The project is expected to be completed by the end of 2026.

The EUR 24 million project focuses on expanding the canning workshop and the finished beer warehouse, and investing in an additional canning line with a capacity of 120,000 cans/hour, thereby increasing the ability to meet production requirements for the market.

Production activities at the Heineken Vietnam- Brewery Company Limited - Da Nang. Photo: MAI QUE

Industrial production continues to increase

According to the Da Nang Statistics Office, the city’s IIP in October 2024 increased by 1.1% compared to the previous month and by 14.04% year-on-year.

Sectors that recorded a significant IIP rise were processing and manufacturing, up 14.93%; the electricity production and distribution industry 8.79%; and mining activities nearly 4.9 times. Meanwhile, water supply, waste and wastewater management and treatment posted a 0.13% decline in IIP.

Thanks to the signing of a number of large-value contracts, in October 2024, a number of industries achieved impressive growth rates compared to the same period. In particular, the rubber and plastic product manufacturing industry rose by 40.21%; the production of prefabricated metal products 45.75%; and the production of means of transport, specifically the shipbuilding industry, by 74.22%.

In the first 10 months of 2024, the IIP of the entire industry saw a year-on-year increase of 5.99%. Some key products recorded high growth rates in the period such as canned beer of all kinds up 16.64%; frozen meat and fish 28.37%; woven fabrics from cotton yarn with a cotton content of 85% or more 67.34%; prefabricated metal house components 76.79%; and aircraft and spacecraft repair and maintenance services 62.37%.

The processing and manufacturing industry group showed positive signs of recovery as its IIP recorded a higher growth rate than that of the entire industry (up 6.13%). Some sectors contributed significantly to the processing and manufacturing industry index: textile increased by 34.01%; beverage production 12.84%; rubber and plastic product production 13.35%; and prefabricated metal product production 17.86%.

The consumption index of the entire processing and manufacturing industry is estimated to increase by 6.59% over the same period in 2023. In particular, some industries have high consumption indexes, contributing to the overall increase such as: textile up 25.69%; rubber and plastic product production 27.6%; prefabricated metal product production 14.2%; and production of other non-metallic mineral products 12.8%.

According to the Director of the municipal Department of Industry and Trade Le Thi Kim Phuong, in early October, the department completed and submitted to the municipal People's Committee for approval of the project "Supporting digital transformation for small and medium-sized enterprises, and individual production establishments, in the industrial and handicraft sectors in the city"; as well as conduct field surveys of 3 production units to support the 3^rd phase of industrial promotion funding.

In the last two months of 2024, the Department will complete reviewing and scoring investment registration dossiers in the Cam Le Industrial Cluster to report to the municipal People's Committee; as well as complete and submit for promulgation regulations on criteria for selecting investors to build technical infrastructure for Hoa Khanh Nam Industrial Cluster and Hoa Nhon 1 Industrial Cluster.

Reporting by MAI QUE - Translating by M.DUNG