Progressive Changes in Industry and Trade Sector

10:34:10 AM | 4/5/2021

After five years of implementing the Quang Nam Industry and Trade Restructuring Project (according to Decision 2722/QD-UBND dated August 5, 2015 of the Provincial People's Committee), the industry and trade sector of Quang Nam have made transformational changes.

Industrial production progresses

Since 2015, several major industries in the province have kept growing. The automobile production and assembly industry is considered a key economic sector. The year 2016 saw remarkable growth when 105,139 automobiles were manufactured, an increase of 40.6% over 2015. The production value (based on basic price in 2010) reached VND47,532 billion (up 21.78% over 2015). In 2017, automobile manufacturing shrank on consumer market changes and tax policy changes. The output declined to 89,449 automobiles, down 14.9% from 2016. Since 2018, the industry has recovered, but not much.

The beverage production industry has tended to expand strongly as some large factories are in operation. Heineken brewery has a yearly output capacity of 150 million liters, planned for expansion to 220 million liters. Pepsico soft drink plant is capable of making 300 million liters.

The garment manufacturing industry has many new and expansion projects in operation, typically in Tam Thang Industrial Park with Panko Tam Thang Co., Ltd, Moon Chang Vina Co., Ltd and Que Son Yarn - Textile - Dyeing - Garment Complex. In 2016-2020, the sector paid VND408.7 billion to State coffers and created 13,609 jobs.

The handicraft industry has 19,856 rural industrial establishments and 47 cooperatives that generate 99,700 jobs. The province currently has 45 handicraft villages, including 33 certified traditional handicraft villages recognized by the Provincial People’s Committee with 3,592 households that employ 7,580 workers.

Regarding industrial zone development: The province planned to build 11 large-scale industrial parks (6,135.72 ha), including Chu Lai Open Economic Zone with seven industrial parks (4,950 ha) and four others (1,185.72 ha), of which three are in operation. Up to now, 90 valid projects, including 37 FDI projects and 53 DDI projects, registered to invest VND2,794 billion and US$570 million.

Besides, according to the plan, the province will have 92 smaller industrial complexes (2,280.47 ha by 2025 and expanded to 2,613.14 ha by 2035). To date, 51 industrial complexes (1,355.18) have been planned in detail and 53 industrial complexes (1,489.65 ha) were approved for establishment. Currently, 49 industrial complexes were registered for infrastructure construction with VND1,775 billion of which VND867.5 billion was realized. So far, these facilities have attracted 270 projects with a total registered capital of VND14,395 billion, of which 175 projects have carried out VND6,382 billion of investment capital and generated 29,718 jobs.

Quang Nam province has also accelerated industrial promotion programs, supported industrial and handicraft development; funded VND26.93 billion for industrial promotion since 2016, mainly channeled for vocational training, job development, product development, branding, information, and business relocation of environment-polluting facilities.

Strong energy growth

Hydropower projects supply about 3.4 billion kWh of electricity a year to the national grid (accounting for 71.13% of the designed capacity and 52.31% of the total planned power output) and pay VND1,300 billion of tax to the provincial budget a year. The management and operation of hydropower reservoirs in accordance with the approved operating procedures has significantly contributed to reducing floods, weakening floods and ensuring water sources for domestic use and agricultural production for downstream people and preventing saline intrusion in the dry season.

In 18 districts, towns and cities in the province, the national electricity grid reaches all 244 communes, wards and towns. The development of the rural electricity system has helped accelerate economic restructuring and improve living standards of rural people.

Renewable energy has been strongly developed. The robust development of hydropower has increased the power supply. The total capacity of power sources expanded from 1,065 MW in 2015 to 1,304 MW in 2020. The ratio of energy supply to renewable energy (hydropower) accounts for over 94%.

In recent years, due to climate change and dry weather, electricity production in the province decreased significantly. However, the local power generation sources not only met the demand for electricity supply in the province, but also fed the national power system from 2015 to 2020. Electricity production expanded from 3,100 million kWh to 5,150 million kWh.

The energy sector has become a dynamic economic sector and played a very important role in promoting socio-economic development and ensuring national defense and security. Energy businesses importantly develop the energy sector infrastructure and help increase the State budget revenue. In the 2015-2020 period, the province attracted many new power projects with a total investment fund of VND15,000 billion. Energy businesses contributed VND894.304 out of VND14,383.18 billion of the province's budget revenue (accounting for 6.22%) in 2017; VND684.997 out of VND19,128,552 billion (3.58%) in 2018: and VND542.260 out of VND18,998,004 billion (2.85%) in 2019.

Booming trade

Currently, the province has 159 operational markets, including two of the first class, 13 of the second class and 144 of the third class. Up to 23,000 business households register to trade in current markets, including 14,000 regular households and 9,000 irregular households. Quang Nam also has one supermarket center and many convenience stores. The province currently has 175 petroleum filling stations, over 600 LPG retail stores and various retail stores to well serve local consumers.

The industry and trade sector now has 1,418 businesses, accounting for 31.26% of total businesses in the province, but most of them are small in scale. In addition, Panko E&D Co., Ltd was the only foreign-invested company licensed to trade goods. The workforce of the wholesale and retail sector accounts for 35.28% of non-farm workers. In this sector, female workers make up for a relatively high rate of 44.76%.

Source: Vietnam Business Forum