Actively Joining Global Value Chain

10:01:25 AM | 15/6/2021

Wrapping up the 2015-2020 term, the industry and trade sector of Quang Ngai province made good growth and industry continued to play a leading and driving role in economic growth and budgetary expansion.

In 2020, although the spreading contagion of COVID-19 epidemic adversely affected production and business activities, industry achieved important results. In the 2016-2020 period, gross industrial output value increased by 4.66% a year and the value-added industrial output expanded by 4.88%, higher than in Resolution 19. Industry accounted for as much as 47% of the province's gross regional domestic product (GRDP) in 2020. The industrial structure also made positive changes, with a rising share of processing and manufacturing. Many sectors made headway, including petrochemical, metallurgy, mechanical engineering, textile and garment, agricultural processing, electricity and electronics.

Service development was also defined as a key task of the province in the 2016-2020 period, with trade playing an important role in service development. In 2020, the total retail sales of consumer goods and services (current prices) reached VND55,849 billion. On average, the value rose by 8.7% per year in the 2016-2020 period. In the past five years, the market developed strongly with an abundant supply of goods, giving more choices for consumers. In particular, new modern services (e-commerce, preservation, storage, sorting, packaging and logistics services; supply of agricultural production materials, support for farmers to sell products) also facilitated robust development to meet increasing consumer demand and boost import and export activities.

In 2020, the province's export value topped US$1.4 billion, representing a year on year growth of 29% in the 2016-2020 period. Foreign-led companies earned US$508 million from exports, marking an annualized growth of 19.7% in 2016-2020. Its key exports included heavy industrials, machinery and equipment (Doosan Group); fuel oil (Binh Son Refinery); textile-garment and footwear; electronic components; inductors; equipment; exhaust regulators; seat cushions; spring cushions; and lenses. Steel made by Hoa Phat Dung Quat Steel Joint Stock Company became a new export of the province from 2019.

Mr. Vo Van Ran, Director of the Department of Industry and Trade of Quang Ngai province, said that based on development results in the 2016-2020 period and prospective large-scale projects planned for investment in 2021-2025 (upgrading and expanding Dung Quat Oil Refinery, Hoa Phat Dung Quat Steel Mill, and gas-fired power plants in Dung Quat Economic Zone), in the coming time, the industry and trade sector will utilize local strengths like geographical location, golden population structure and Industry 4.0 achievements for fast and intensive development of fundamental, strategic and competitive industries. The province will develop information technology and electronic industries as the main path; develop processing and manufacturing industries as the center; develop smart manufacturing industry as a breakthrough; focus developing green industry and supporting industries for key industries and gradually raise industrial localization rate; and actively participate in the global value chain.

By 2025, value-added industrial output growth will be 8-9% a year, driven by the processing and manufacturing industry which will expand by 7-8% a year. The share of industry - services in GRDP will be 69-70%. The share of industry in GRDP will be about 36-37%; and the share of processing and manufacturing industry will be over 30%, with the manufacturing industry accounting for over 12%.

In addition, Quang Ngai province concentrates on developing comprehensive modern trade. The province will harmoniously develop its trade with regional trade, national trade and international trade, align the goal of fostering comparative advantages with environmental protection and sustainable development, increase imported products for industrial production and boost competitive exports of high localization and high added value, and gradually reduce the share of raw products in the export structure. The locality will strive to achieve annual retail growth of 4.5% in 2021-2025 and make export value of US$1.95 billion and import value of US$2.1 billion in 2025.n

Source: Vietnam Business Forum