Escaping the "rough waves" of industrial enterprises, returning them to the "runway" of growth

Economic signals have restored industrial enterprises to the growth "runway" and contributed positively to the overall growth results of the entire economy.

Bright colors

Despite many pessimistic forecasts from the beginning of the year, businesses in the field industrial The first half of this year has seen a pretty good recovery. Many businesses have made a spectacular comeback.

It is expected that businesses in the industrial production sector will accelerate in the last 6 months of 2024. Photo: VNA

Mr. Pham Tuan Anh - Deputy Director Department of Industry, Ministry of Industry and Trade Sharing, in the context of the domestic economy facing many difficulties, poor market demand, private consumption has not yet played a large role in promoting demand for production, along with efforts to remove difficulties for the real estate market, the Government's direction to promote disbursement of public investment capital, speed up the completion of large public investment projects is extremely important in creating new momentum for industrial production.

“ The government has also had to implement many synchronous solutions to support businesses in the recent past so that industrial enterprises can maintain normal production activities in the context of the domestic economy still facing many challenges, ” said Mr. Pham Tuan Anh.

For example, for a multi-industry corporation like DNP Holding, operating the system in an unstable economic environment in the past half year has been a huge challenge. However, by the end of May this year, the company's revenue had exceeded 50% of the plan, and profits had also increased by more than 50%.

Mr. Tran Huu Chuyen, Deputy General Director of DNP Holding, said that this result was beyond the forecast from the beginning of the year thanks to the significant recovery of orders in the context of cheaper and more accessible credit. “ Despite extremely difficult economic conditions, we appreciate the timely support from the Government. We have taken advantage of policy incentives to restructure and recover effectively, ” said the leader of DNP Holding.

Or like Vietnam Chemical Group (Vinachem), the total revenue of the whole group in the first 6 months of the year is estimated at 29,595 billion VND, equal to 52% of the year plan, up 10% over the same period in 2023. The total profit of the whole group in the first 6 months of 2024 is estimated at 815 billion VND. In which, the units with increased profits compared to the same period in 2023 are: DAP-Vinachem Joint Stock Company by 46 times, Binh Dien Fertilizer Joint Stock Company by 5 times, Can Tho Fertilizer and Chemical Joint Stock Company by 4 times, Southern Rubber Industry Joint Stock Company by 2 times...

Typically, DAP Joint Stock Company - Vinachem, Mr. Vu Van Bang - General Director of the company said that, entering the third quarter of 2024, the Company will strive to complete production and business targets such as: DAP production output: 60,000 tons; DAP consumption output: 60,000 tons; industrial production value at actual prices: 763 billion VND; total net revenue: 762 billion VND; pre-tax profit strives to reach about 25 billion VND.

Focus on 4 solutions

Overall, to pave the way to enter the growth “runway” in 2024, Vietnam’s industrial manufacturing sector needs to make more efforts to become “part of the world’s factory”. In particular, it is necessary to diversify the industrial market, focus on future sustainability, and quickly invest in both human capacity building and automation.

According to Dr. To Hoai Nam, Permanent Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises (VINASME), in the long term, towards the goal of sustainable growth, industrial enterprises need to focus on promoting green production, green consumption and circular business. Moreover, enterprises need to implement a digital transformation strategy associated with the problem of investment in technology, digital human resources, data and risk control, etc.

To stimulate consumption, according to Mr. Tran Quoc Hung, former executive director of the Institute of International Finance (IIF), strong measures are needed to accelerate the disbursement of public investment capital, thereby stimulating demand and building infrastructure to serve production. In addition, direct and indirect taxes as well as public fees need to be cut to increase household purchasing power and increase total domestic consumption demand.

Going into specific solutions, on the side of the Ministry of Industry and Trade, Mr. Pham Tuan Anh proposed 4 specific solutions: The first, Continue to proactively and effectively implement business support policies approved by the Government to remove difficulties and obstacles in production and business activities of enterprises - especially in key export industries such as textiles, leather - footwear and basic industries such as automobiles, mechanics, steel, etc.; promote the operation of new industrial production projects to serve export and domestic consumption, creating more capacity for production development and goods sources for export.

Monday, Focus on consulting on perfecting institutions, policies, laws, and development strategies for a number of fundamental industries, prioritizing the basis for new growth resources in industries in the short term as well as in the long term.

Tuesday, Continue to effectively promote the implementation of working programs with localities and existing business support programs to restore and promote industrial growth in localities and key economic regions.

Wednesday, Support businesses to continue to take advantage of opportunities from large public investment projects and the Government's real estate market recovery policies; Encourage increased purchases of domestically produced goods, minimizing the use of imported products and materials that have been domestically produced; Promote the search for new markets for key export industries such as textiles, footwear, electronics, etc.

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