Processing and manufacturing industry makes high efforts, gains good growth

The processing and manufacturing industry has experienced steady growth, with certain key sectors showing significant increases and continuing to drive the province's economic growth in the first 10 months of 2024.

Production activities at Kim Chung Mechanical Company (Tan Uyen City)

 Seize the opportunity

According to the General Statistics Office, in the first 10 months of 2024, the province's processing and manufacturing industry’s production value increased by 6.4% over the same period in 2023. In particular, some sectors had high production indexes, such as beverage production increased by 13.6%; textiles increased by 14.1%; leather, and related products increased by 28.3%; bed, wardrobe, table, and chair production increased by 14.6%, metal production increased by 10.1%.

Ms. Trinh Thi Hong Chau, Director of Kim Chung Mechanical Company (Tan Uyen City), said that in 2024 the company expects to achieve 50% growth due to great opportunities from the expanding supply chain. The actual opportunity is even greater, but currently, companies must meet at least two criteria—quality and price—to invest in products that participate in the supply chains of large corporations. This necessitates that the company possess advanced technology and find optimal production methods to reduce costs and, consequently, lower product prices. However, the company is facing challenges in accessing loans for investments in new technology, which leads to a focus on achieving a reasonable growth rate.

Mr. Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, Director of Nam Binh Company Limited, said that in 2024, many enterprises in this industry will achieve high growth rates due to seizing market opportunities. “At Nam Binh Shoe Company, this year's growth is expected to reach over 50%. We have been proactively utilizing all resources to meet domestic and export consumer standards, accepting lower profit margins than before for sustainable development. We are reserving 50% of goods for the domestic market and 50% for the export market to remain proactive in response to fluctuations in the global situation," said Mr. Nguyen Quang Vu.

According to Ms. Tran Thi Tra, Director of HTC Glove Joint Stock Company in Ben Cat City, following the peak of the Covid-19 pandemic, the company chose to invest in new equipment and machinery to sustain its growth and meet the rising market demand. The company is increasing production capacity, ensuring the supply of medical gloves to meet signed orders and supply to major domestic and international partners, ensuring stable quality and prices.

Create momentum for deeper integration in the supply chain

Mr. Huynh Quang Thanh, General Director of Hiep Long Wood Company (Thuan An City), stated that in 2024, production in this industry will still face many challenges. Therefore, it is necessary to have many measures to support production, especially output solutions for products through measures to stimulate domestic consumption, strengthen trade promotion to expand export orders, and open up the market.

At a recent workshop organized by the Ministry of Industry and Trade on market solutions for the processing and manufacturing industry, Economic Expert, Dr. Nguyen Minh Phong, said that in general, one of the difficulties and challenges that enterprises in general and processing and manufacturing enterprises in particular are facing is the increasing geopolitical tensions and competition between major countries in the world, along with the slow recovery of Vietnam's major trading partners. Risks of disruption to global supply chains and production chains and increased freight rates also directly impact import-export activities and an open economy like Vietnam.

“Import-export activities rely heavily on various markets, goods, and areas of foreign investment. Many of Vietnam's export markets are increasingly setting new requirements for international trade, erecting stricter market barriers, and enhancing trade protectionism. There is a growing emphasis on health protection products, organic goods, energy conversion factors, and sustainable development as part of green transformation efforts...", said expert Nguyen Minh Phong.

Ms. Phan Thi Khanh Duyen, Deputy Director of the Provincial Department of Industry and Trade, said that the industry and trade sector continually works to create favorable conditions that allow enterprises to access information and market solutions. This approach fosters the growth of industrial products and enhances participation in the global supply chain for processing and manufacturing. Additionally, we actively support businesses in innovating production and business models that align with sustainable development goals. There is also a strong emphasis on developing human resources to meet the demands of technological innovation and to ensure production processes align with current requirements and development trends.

 Reported by T.My, T.Tuyen - Translated by Ngoc Huynh