Business Business

21/07/2017 - 15:08

Index of Industrial Production: Accelerating

The index of industrial production (IIP) in the first 6 months of the year saw positive changes, achieving the highest growth rate in the last two years and increased by 13.4% over the same period in 2016. This breakthrough is mainly due to the increased capacity of new industrial products and the high growth of the electricity, cement, textile and garment industries.

Shipping frit enamels in Phong Dien Industrial Park

Breakthrough from new products

Baosteel Can Making (Vietnam) Co., Ltd. in Phu Bai Industrial Park – a two-piece aluminum cans and lids manufacturing factory – produced 280 million products in the first 6 months, with revenues reaching VND 424 billion, increasing by 30% compared to the last 6 months of 2016. After one  year of operation with the production line of two-piece aluminum cans and can lids with the total investment of USD 75 million, the enterprise has a stable market with 15 big clients, such as Carlsberg Group, Pepsi Group ... and creates jobs for 120 employees.

"The biggest advantage of the manufacturing plant is that over 70% of the product is supplied to Carlsberg Group in Vietnam and exported to other countries," said Mr. Guo Zhi Qiao, deputy director of the factory. “Phu Bai Brewery is located next to the company so it is very convenient in transportation and transaction. In addition, we have signed long-term contracts with beer and beverage companies in and outside the country, so the scale of production is expanding. "

As the newest manufacturer of frit enamels in the area, with a recent investment of VND 100 billion to build the enamel production line in accordance with European standards which was put into operation by the end of 2016, Frit Phu Xuan Corporation is currently having a very successful business, when their product is not enough to meet the market demand.

Company Director, Mr. Le Van Thong emphasized: "With a capacity of 22 thousand tons per year, from the beginning of the year to now, the company has supplied over 10,000 tons of products to the market, with an expectation to reach 15 thousand tons from now to the end of the year. We will continue to invest 25 billion to raise the capacity of the plant to 33 thousand tons per year in early 2018.”

One of the advantages for the increase in the Index of Industrial Production in the first 6 months is the increased capacity of the newly launched projects, such as the Thua Thien Hue energy tablet factory in Thuy Phuong industrial cluster with a capacity of 25,000 tons of products per year; the pharmaceutical factory of Hera Biotech Co., Ltd in Tu Ha Industrial Park with the capacity of 100 million products per year; Garment factory 3 of Scavi Hue company in Phong Dien industrial zone.

The two-piece aluminum cans and lids factory of Baosteel Can Making Co., Ltd in Phu Bai Industrial Park comes into operation, contributing to IIP increase.

Maintaining growth rate

Along with the increased capacity of new industrial products, the production and distribution of electricity and ice increased by 91.8% over the same period of 2016, contributing to the increase in the value of IIP.

According to Thua Thien Hue Electricity Company, from the beginning of this year, the commercial electricity output of the whole province was 723.497 kWh, achieving 465% of the yearly plan and increasing by 7.6% over the same period of 2016. Mr. Ha Thanh Long, Director of Thua Thien Hue Power Company, said: "To ensure safe and stable supply of electricity, the company is speeding up the major repair, regular repair works and focusing on subprojects to reduce the intensity of emissions in electricity supply."

Director of Department of Industry and Trade Nguyen Thanh affirmed: "In order to maintain the growth rate in the last 6 months of 2017, the Department will coordinate with other provincial departments to focus on supporting businesses to promote production, maintaining high growth rate of the industry, and stabilizing the production of key products such as beer, cement and textiles. The department will support enterprises in promoting technological improvement activities, enhancing the management and study of the use of domestically produced raw materials and machinery to reduce costs, lower production costs and increase investment efficiency. "

In 2017, the IIP is expected to increase by 10% compared to 2016, of which industrial production value accounts for VND 28,200 billion; Electricity production: 1,166 million kWh, commercial electricity output of 1,678 million kWh increased by 10.4% compared to 2016 and the percentage of households using electricity was 99.98%.

By Thanh Huong