Dong Nai: Achievements thanks to priority in supporting production and business enterprises

Taking enterprises and production facilities as the main forces to promote the development of rural industry, in the past years, Dong Nai Industry encouragement has not only reserved resources but also created many favorable conditions, giving priority to this force to expand production and business.

By the end of 2018, there were 9,738 rural industry establishments in the area, an increase in both quality and quantity compared to 2017. However, because most establishments are individual business households, with small and super small scale, capital used for production, business activities, investment capital is mainly from own sources, so the investment is low.

Data from Dong Nai Department of Industry and Trade also shows that from 2016 to 2017, the investment capital of the rural area only reached 717 million VND/facility on average. This is not a high level of investment, reflecting the endogenous capacity of rural industry establishments is still limited.

Clearly seeing the above weaknesses, in the past years, through the industrial promotion fund, Dong Nai Department of Industry and Trade has implemented many programs to support rural industry establishments in the province to improve production capacity. In 2018 alone, Dong Nai industrial promotion was allocated VND 4.2 billion for the implementation of the contents. From this capital, the Center of Industrial Promotion and Industrial Development Consultant (center) has supported 16 rural industry establishments to invest and apply modern and advanced machines in production. These projects have been effective, helping to increase revenue and profit for the establishment.

Typically, the center has supported Truong Phat lotus seed processing facility (Vinh Tuy hamlet, Long Tan commune, Nhon Trach district) to invest in a system of fresh lotus seed peeling machine and reversible agricultural dryer. With a clean, fast peeling feature, the new equipment has helped the facility reduce labor costs by up to 50%, increase productivity and reduce material waste.

In addition, the center also supports Pho Hoang facility (Gia Tan commune, Thong Nhat district) to apply advanced machinery and equipment in producing noodles and dried noodles. The equipment to be invested is a drying system using an automatic mesh conveyor and a diesel combustion chamber that takes indirect heat for the dryer according to the wind heat principle. According to the representative of the beneficiary unit, the quality of the product after investing in the dryer system has exceeded expectations when it has a high stability, reducing costs by 40%, increasing productivity by 1.5 times. More importantly, the facility can take the initiative in delivery time.

The active support of the industrial promotion program has helped rural IT establishments in the locality significantly change their appearance. Accordingly, the rural industry also obtained positive results. In 2018, the province’s production value of rural industry increased 5.8% over the same period, reaching VND 59,898 billion.

With the goal that by 2020, Dong Nai will have 250 more rural industry enterprises, the value of rural industry production will increase to VND 70,400 billion, Dong Nai Department of Industry and Trade has been implementing many solutions. In particular, to overcome the shortcomings in internal resources of rural industry establishments, the shortage of manpower due to labor restructuring, the Department of Industry and Trade has proposed the provincial People’s Committee to allocate an adequate annual budget to meet and timely needs of industrial promotion activities; encourage individuals and units to participate in the promotion program of equity.

Review and advise the Provincial People’s Committee to issue new, supplement and amend legal documents, mechanisms and policies in the field of industrial encouragement. Building a database on rural industry from which to manage it more closely. Implementing the project on a large scale, sectors with priority given to the province’s strengths.

From 2016-2018, Dong Nai industrial encouragement is allocated VND 14 billion for the implementation of industrial promotion programs and projects, thereby significantly supporting rural industry establishments to improve production capacity and product quality.

Productivity and Quality Office