Although still facing objective and subjective difficulties and challenges, the signs of improvement in industrial production activities not only show the recovery momentum of this important economic sector; but also contribute to promoting socio-economic development.

Thanh Hoa garment industry has achieved positive development in the first months of the year (workers of Tien Son Group Joint Stock Corporation count and supply materials for the production line).

Impressive growth numbers

After successfully completing and exceeding the first maintenance schedule, in the first months of 2024, Nghi Son Refinery and Petrochemical Plant has continuously operated at 15-20% above its design capacity. Thanks to the high growth in production output and value of some key products such as RON 92 gasoline up 61%, RON 95 gasoline up 19%, Diesel up 35%... the total value of the factory's products in the first quarter reached more than VND 44,000 billion, up 28.6%; revenue reached VND 47,014 billion, up more than 32% over the same period.

Along with increased capacity, more efficient and reliable operation, after successful maintenance, Nghi Son Refinery and Petrochemical Company Limited (NSRP) has continued to focus on research and development to launch high-quality, environmentally friendly products. On March 15, NSRP successfully launched its first 10 ppm Diesel product line with very low sulfur content to the market. This product complies with the most stringent emission standards, providing superior performance, improving fuel efficiency and minimizing engine maintenance, contributing to a cleaner and greener environment.

Mr. So Hasegawa, General Director of NSRP, said: “We also deeply integrate safety solutions into corporate governance and ensure that safety is always the top basic factor throughout the company's operations. As of March 26, NSRP has surpassed the milestone of 15 million safe working hours. To meet the increasing domestic market demand for gasoline and oil, which will have to be imported in the coming time, and at the same time maintain optimal operating efficiency, NSRP is focusing on researching technical solutions to increase the plant's capacity by 15 to 20% compared to present.”

Also in Nghi Son Economic Zone, many enterprises in the fields of electricity production, packaging, cement... have also shown good signs of development. At Miza Nghi Son Company Limited, thanks to the sudden growth of a number of products, the company's revenue increased by 22% and its profit increased by 9% over the same period. According to the representative of this company, the unit is aiming for the standards of the most demanding markets to increase added value as well as production and business efficiency. To achieve that goal, the company is continuing to research and optimize processes to minimize production costs, create better price competition and increase reliability in delivery progress. The company is planning and implementing a series of market and management solutions to bring the total output of goods to a growth rate of 10% compared to 2023.

As a major contributor to the province's industrial growth, in the first quarter of 2024, Thanh Hoa's textile and garment industry's production activities have improved significantly as orders returned in large numbers. According to data from the Department of Industry and Trade, the textile and garment industry's production output increased by 6.3%, and exports increased by 34.4% over the same period last year. This result was achieved, in addition to efforts and proactiveness in restructuring production and reducing operating costs, many enterprises have also flexibly searched for and connected to the market. Mr. Trinh Xuan Lam, Vice President of the Textile and Garment Association, said: "Up to this point, most enterprises have had enough production orders for the second quarter. Some enterprises have had some and are accelerating production, looking for new orders, creating momentum for growth throughout 2024."

According to information from the Department of Industry and Trade, in the first quarter of 2024, 19/25 major industrial products increased compared to the same period. Notably, some products increased sharply such as: crystallized sugar increased by 71.5%; electricity production; paper and cardboard of all kinds increased by 20.3%; gasoline and oil products also increased sharply... Along with that, small-scale handicraft production and traditional craft villages developed steadily, with diversified products, meeting market demand. These positive results created momentum, bringing the industrial production index (IIP) in the first quarter up by 20% over the same period.

Effort to accelerate

Despite positive signs of growth, industrial production in 2024 is still facing many difficulties and challenges. In addition to the economic recession that continues to affect investment activities and product consumption, since the end of 2023, businesses with import and export activities of goods and raw materials have been affected by high shipping costs due to the conflict in the Red Sea.

Manufacturing electrical testing equipment at Thanh Hoa Electricity Joint Stock Company (Dinh Huong Industrial Park - Tay Bac Ga).

At Nghi Son 2 BOT Thermal Power Plant, in the first quarter, with stable, reliable and safe operations, the plant's production indicators all grew strongly, with output reaching more than 1.98 billion kWh, up 30% over the same period. A representative of Nghi Son 2 Power Company Limited said that the company has developed a plan for importing and storing coal to be ready to meet the demand for mobilizing maximum power sources from the National Electricity Dispatch Center (A0). During the upcoming peak of the hot season, the plant is expected to generate an output of about more than 2.2 million kWh in the second quarter and more than 8 billion kWh to meet the electricity consumption needs for production and people.

In the garment industry, along with market diversification, many enterprises have also developed new strategies to increase the competitiveness of their products in the global market. Mr. Tran Ngoc Phieu, Production Manager of Sunrise Sports Equipment Company Limited (Hoang Hoa), said: "Currently, the company is stepping up recruitment to meet production orders. We also continue to invest capital to upgrade and equip more modern machinery, helping to increase productivity, better meet customer requirements for quality and aesthetics. The company strives to grow 10% compared to last year and enter the European market."

In particular, Thanh Hoa's garment industry is also forecast to have positive signals when more factories supplying raw materials and accessories in the province come into production, helping businesses in the province have more conditions to meet the standards of origin of inputs to enjoy tariff incentives from Free Trade Agreements. Typically, recently, at Bim Son Industrial Park, after more than 20 months of construction, the SAB Industrial Factory Project, belonging to SAB Vietnam Industrial Company Limited, was officially inaugurated and put into operation. With a total investment of more than 62 million USD, the factory specializes in producing clothing accessories such as zippers, plastic buttons, metal buttons, etc. Putting the project into operation not only creates jobs for more than 1,000 local workers; but also helps Thanh Hoa province have new industrial products supporting the garment industry, helping to increase the value of production and export of goods.

According to the Department of Industry and Trade, in 2023 alone, the province had 48 more industrial projects approved in principle and granted investment certificates. With the direction of the provincial level, departments, branches, Nghi Son Economic Zone Management Board and Industrial Parks, investors have proactively completed procedures, focused capital, mobilized machinery and human resources to speed up project implementation. Thanks to that, up to now, a number of projects have been basically completed and put into operation such as: LED bulb and electronic equipment factory project of Hoa Thang Thanh Hoa Company Limited and Automotive electric cable production project of BOB Company Limited (Trieu Son); factories of Hoa Loi Group in many localities and a number of textile projects.

Positive signals in industrial production from the beginning of the year, along with trade promotion activities and support for businesses to boost product consumption, are expected to help Thanh Hoa achieve the target of industrial production growth of 14.9% or more in 2024.

Article and photos: Minh Hang

Lesson 4: Site clearance is the key task.