Dong Nai: Supporting businesses to improve production and business efficiency

In 2019, Dong Nai drastically deploys the province’s socio-economic development tasks and solutions from the first day and the first month; focusing on breakthroughs in key and sprawling areas, creating motivation for rapid and sustainable development.

In 2018, economic growth reached 8.1%.

In 2018, Dong Nai’s economy continued to grow highly (GRDP) at 8.1%, GRDP per capita reached USD 4,226. The economic structure has gradually increased in proportion, the services have high quality, great value added, and have competitive advantages. The index of industrial production (IIP) increased by 9%, of which the processing and manufacturing industry increased by 9.16%; production value of agriculture, forestry and fishery increased by 3.3%. Total retail sales of goods and services reached VND 162.5 trillion, up 11.5% over the same period.

Dong Nai industrial parks and industrial clusters are strongly developing (32 industrial zones have been established, of which, 31 industrial parks with 77% occupancy rate; 23 industrial clusters with 40% occupancy rate); mobilized investment capital for social development of 90,000 billion VND, up about 10% over the same period; domestic investment attraction reached over VND 27,800 billion VND, reaching 278.5% of the year plan; Foreign direct investment (FDI) reached over 1,800 million USD, etc.

By the end of 2018, there were 9,738 IT 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.

Towards improving production capacity

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 59,898 billion VND.

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.

Productivity and Quality Office