2:41:28 PM | 9/11/2005
Although Soc Trang was re-established in 1992 it reached an average GDP growth rate of around 10 per cent over the past years is thanks to its own efforts. The province’s industry has seen high growth rates with production ranking 5th in the Mekong Delta region. Soc Trang’s major industrial products are processed fisheries, rice, sugars, beer, construction materials, civil mechanical goods and handicrafts.
Few production businesses
As at the end of June 2005, total industrial production of Soc Trang Province were totalled at VND1,584 billion, up 3.42 per cent against the same period last year and meeting 36.6 per cent of the target set for the whole year.
Production of frozen processed fisheries has developed strongly, accounting for 70-80 per cent industrial production of the province. The second staple is rice, making up 20 per cent of the province’s economic structure. The remainder including the production of sugar and beer account for only a small proportion of around 3 per cent.
Talking about the result, Director of the Province’s Service for Industry Nguyen Van Tang said that over the past time Soc Trang’s industry sector has not developed corresponding to the province’s potentials. The development has not been stable in the context the world’s economy seeing fluctuations.
The recent dumping lawsuit with required bonds for ensuring payment from US partners pushed local fisheries processing companies into difficulties. For example, Sao Ta Foodstuff Co. - Vietnam’s leading fisheries export company - saw its production value decrease by nearly 20 per cent in comparison to the same period last year.
Due to these difficulties, total production value of the province’s fisheries processing sector in the first six months of this year reached only VND383.5 billion, VND61 billion lower than the first half last year. Hence, Soc Trang has raked in only VND1,584 billion from industrial production so far this year, meeting 36.6 per cent this year’s target and up 3.42 per cent on-year.
Currently, Soc Trang has 1,156 enterprises with 65 per cent operating in the industry-construction sector. Apart from nine fisheries processing enterprises, most of the remaining companies are small in size and have low competitiveness. This is big hindrance for the development of the province’s industry, particularly when Vietnam fully joins in AFTA in 2006.
Making breakthrough for economic development
Soc Trang set targets for the industry sector of reaching VND4,330 billion in 2005 and VND8,340 billion in 2010. To meet the industrial targets set for 2005 and the following years, the province must make a breakthrough in other sectors of fishery and agriculture
In a working day in the province, Industry Minister Hoang Trung Hai said that apart from developing advantageous industries such as fisheries and rice processing, Soc Trang needs to focus on developing other industries of foodstuff, consumption goods production, construction materials and handicrafts. As for the foodstuff processing sector, the province must pay attention to finding markets for outputs and must seek investment.
Currently, Soc Trang has brought out a general map for development of six industrial parks by 2010 (approved by the government). Of which, An Nghiep Industrial Park with total areas of 257.3 ha is being built. Hopefully with the appropriate policies, Soc Trang’s industry sector will develop fast in the near future. Soc Trang will become one of the leading provinces in the Mekong Delta region in term of industrial production.