Key industries are the main driving force determining the industrial growth index. Entering 2024, positive signals about orders and consumption markets are favorable conditions for enterprises to boost production and business. However, in addition to facing high production costs, enterprises also face difficulties due to difficulties in maritime transport activities, affecting the time and cost of delivery of import and export goods. To ensure production plans and stabilize jobs for workers, enterprises are proactively adjusting plans for raw materials, as well as reducing input costs to improve production and business efficiency.
Transporting steel for consumption at Nghi Son Steel Rolling Plant No. 1.
In 2024, along with the recovery signals of the real estate market, public investment projects and works have been directed drastically, creating favorable conditions for the consumption and growth of many construction materials such as iron, steel, cement, etc.
Typically, in the cement industry, the current design capacity of cement factories in the province has reached 24.4 million tons/year, leading the country. However, the current context of excess supply has led to fierce competition in terms of selling prices and markets. In that context, along with the orientation of expanding export markets, enterprises are making efforts to improve technology, reduce input production costs to have room to compete on prices. Mr. Le Tien Dung, Deputy General Director of Long Son Cement Company, said: "The company's production plan for 2024 is to increase output by 3-5% compared to the same period. We are opening more dealer channels to increase consumption output, and at the same time continue to find new and stable export markets for sustainable cooperation."
With solutions to reduce costs and exploit and expand the market, in the first 7 months of this year, cement production and consumption in the province reached about 10.7 million tons, up 5%; exports reached nearly 1 million tons, up 25.9% over the same period.
Along with cement, many other key products are also facing difficulties and are strongly affected by the current high sea freight rates. According to businesses, freight rates to Europe are currently 2-3 times higher than the same period in 2023, with raw materials imported from Europe. Freight rates from Asian ports have also increased by 1,000 - 2,000 USD/container. This not only affects export goods but also causes difficulties for many import enterprises due to disruptions in orders and high input costs.
Mr. Le Hung Manh, General Director of Huu Nghi Fertilizer Joint Venture Company, said: "Instead of planning to import raw materials 2 months in advance, we now have the initiative to plan up to 4 months for raw materials imported from Europe. With raw materials imported from China, the company also plans up to 1 month in advance instead of 1-2 weeks as before. Along with that, the company also diversifies import channels by road, reducing dependence on sea transport routes in the context of continuing to escalate freight rates. With solutions to minimize the negative impact of the market, the company's revenue in 2024 is expected to increase by 15% and still maintain jobs and stable income for workers."
According to the Department of Industry and Trade, in the context of many difficulties, in July, some key industrial products with a large proportion continued to maintain good production activities such as: petrochemical products increased from 26 - 39%, electricity production increased by 39.8%; iron and steel increased by 11%... This is also the driving force for the industrial production index of the whole province in the first 7 months of 2024 to increase by 16.1% over the same period.
In 2024, Thanh Hoa province aims to increase industrial added value by 14.8% compared to 2023. This is a very ambitious target, especially in the context of industrial production activities being affected by the impacts and challenges of the world and domestic economy. This reality requires industrial production units to be more flexible and proactive in production, market forecasting; at the same time, be more proactive in the stages of reforming processes, technology, and effective production management.
Currently, the Department of Industry and Trade is continuing to review and evaluate the production capacity of each group of goods and industries to promptly advise the province on solutions to remove difficulties and support enterprises to increase production and consumption of products. Along with that, the department is also actively disseminating and guiding newly signed free trade agreements to improve the integration capacity of enterprises and focus on grasping difficulties and supporting the early implementation of approved industrial production projects.
Article and photos: Tung Lam
Source: https://baothanhhoa.vn/cac-nganh-cong-nghiep-chu-luc-no-luc-vuot-kho-221007.htm
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