Positive Movement
When it comes to rural industrial products, we must mention the exported rattan and bamboo products of Duc Phong Company Limited. Mr. Thai Dai Phong - Director of Duc Phong Company Limited said that the company's products have just been certified by the National Council as the first 5-star OCOP product of Nghe An province. In the face of difficulties, the company has maintained stable production for thousands of workers, especially those in rural areas. Currently, the products have been exported to 34 countries around the world.
Up to now, Nghe An has organized 6 voting sessions for typical rural industrial products from district to national level. Typical units include: Ho Hoan Cau Company Limited (Quynh Luu), Duc Phong Company Limited (Vinh City), Vietnam Algae Science and Technology Joint Stock Company (Quynh Luu), Hoa Tien Brocade Craft Village Cooperative (Quy Chau)... for many consecutive years have been recognized as typical rural industrial products at all levels for many different types of products.
Mr. Ngo Xuan Vinh - Deputy Director of Nghe An Center for Support and Consulting on Industrial and Trade Development said: In 2001, Nghe An faced many difficulties and challenges in terms of underdeveloped rural industry; inconvenient freight transport, limited industrial development infrastructure; low starting point, unfavorable environment for rural industrial development... After 23 years of implementing Resolution 06-NQ/TU (now Resolution 07-NQ/TU dated December 23, 2021 on rapid and sustainable development of industry and handicrafts in the period of 2021-2030), Nghe An has achieved many important achievements.
From a province with an industrial and handicraft production value of about 3,500 billion VND in 2000, it will be about 79,000 billion VND by 2023. The whole province has 223 typical rural industrial products at the district level, 96 typical products at the provincial level, 26 typical products at the regional level and 16 products at the national level. There are 403 products ranked as OCOP 3 stars or higher, accounting for 4.6% of the total number of products ranked as stars nationwide. Of which: 43 products are ranked as 4 stars; 359 products are ranked as 3 stars.
From the general industrial production activities scattered, mixed in residential areas, high construction investment costs, environmental pollution, ..., up to now, the province has reviewed and planned, invested in the infrastructure system of economic zones, industrial parks - clusters, processing zones increasingly complete, creating favorable ground to attract investment enterprises with a total planning area of up to 23,234 hectares. Up to now, 9/11 industrial parks have investors, the remaining industrial parks are continuing to invest in building and completing the technical infrastructure system and attracting secondary investment projects. The industrial parks have attracted about 300 investment projects, including 104 FDI projects, the rest are mostly rural industrial establishments, the occupancy rate of industrial parks is 41.9% ...
From a province with few large industrial production facilities, a system of state-owned enterprises lacking key investment for development, almost absent of foreign investors; difficulties in facilities serving industrial production at a low level, underdeveloped technical infrastructure, up to now there have been nearly 1,370 rural industrial production facilities with a total registered capital of about 60,152 billion VND. Of which, there are 104 FDI projects with a total registered investment capital of 39,634.2 billion VND with many large projects from more than 13 countries such as: USA, China, Japan, Korea, Thailand, Taiwan... with large corporations such as Goertek, Everwin, JuTeng, Luxshare ICT, Foxconn, Sunny Automotive...
In particular, in 2023, Nghe An province will continue to be in the top 10 localities with the largest FDI in the country. According to statistics, industries have created about 283,000 jobs for workers, of which rural industry has created jobs for nearly 200,000 workers with an average income of over 5,506 million VND/person/month.
Regarding import and export of goods, although import and export turnover is still low, there is an increasing trend, the number of enterprises participating in export is increasing with over 200 enterprises by 2023, including many rural industrial enterprises.
“The acceleration and sustainable development of rural industry has had a positive shift towards rapid growth and development, creating many products, contributing a large number to the total number of typical rural industrial products, OCOP products recognized by the province, contributing to attracting and developing the tourism industry in the province” - Mr. Vinh shared.
To promote the implementation of the task, the resolution allows the establishment of the Industrial Promotion Center (now the Nghe An Center for Support and Consulting on Industrial and Trade Development) and annually allocates 0.5% - 1% of the local budget to support the development of industry and handicrafts. In the period 2002-2023, the total support fund for rural industrial establishments is more than 102 billion VND, supporting over 1,600 programs, projects and tasks. Industrial promotion and support work has affirmed its important role in promoting the development of rural industry, contributing significantly to promoting the shift of economic and labor structure, creating jobs and increasing income.
Prioritizing technology in development
However, despite achieving very important results, the growth in industrial production value is higher than the national average but unstable, the industrial - construction structure shift is slow and lower than the target. The scale is mainly small and micro-small accounting for 97.03%; The number of leading enterprises, playing a role in promoting the growth of an industry/sector, is still very modest. Rural industrial products do not have a stable consumption market, most of the establishments are still in a state of fragmented, small-scale production, lacking close linkage from production, processing to product consumption, leading to low competitiveness in the market.
Innovation in directing rural industrial development, work to remove difficulties in organizing production and product consumption for low-efficiency craft villages, lacking midwifery enterprises; the number of craft villages meeting standards and being recognized is decreasing. Environmental pollution still exists and has not been completely resolved. Access to capital sources is still facing many difficulties, so investment in equipment and technology innovation for production also has many shortcomings...
Implementing Resolution 07-NQ/TU dated December 23, 2021 on rapid and sustainable development of industry and handicrafts in the 2021-2030 period, Nghe An is focusing on implementation, in conjunction with the policies of the Party and State.
Resolution 19-NQ/TW dated June 16, 2022 of the Central Executive Committee on agriculture, farmers, and rural areas to 2030, with a vision to 2045, identifies promoting industrial restructuring and transforming product structure towards modernization. Industrial development must be associated with the speed of urbanization, promoting service development, the private economic sector, and creative startups, especially in the fields of small-scale industry and craft villages, to create many branded products from local raw materials, creating many on-site jobs for workers...
Resolution 39-NQ/TW of the Politburo on building and developing Nghe An province to 2030, with a vision to 2045, has identified the task of strongly developing industry in a modern direction, prioritizing the development of a number of key industries, new technologies, and high technologies; industries capable of deeply participating in the global supply chain and value chain, creating high added value, and having a spillover effect on economic sectors.
Mr. Pham Van Hoa - Director of the Department of Industry and Trade said: To successfully implement the resolutions, with the spirit of "Nghe An steps strongly, goes far", in the coming time, based on the advantages of each region, each area: Raw materials, human resources, available industrial zones and clusters and traditional craft villages, Nghe An province needs to further perfect the overall strategy for rural industrial development, with special priorities on capital investment, technology transfer, scientific and technical consultancy, human resource training and an open financial and credit mechanism suitable for the development capacity of this area, especially development support funds.
Rural industrial development must be placed in correlation with the industrial development strategy on a national scale in order to utilize and exploit comparative advantages and optimize resources on a comprehensive scale of the entire economy. From there, it will create a dual impact, both creating a new impetus to bring the rural economy to a higher stage of development, and creating important premises to attract foreign investment capital, making an important contribution to promoting sustainable economic growth.
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