Bac Kan industry grows strongly in the first quarter of 2025

Wood production at Govina Investment Joint Stock Company, in Thanh Binh Industrial Park, Cho Moi district

Of which, the processing and manufacturing industry increased the most with an increase of 31.83%, followed by the mining industry with an increase of 17.8%; electricity and gas production and distribution increased by 6.61%; waste treatment and water supply activities increased by 15.09%. The industrial production value (calculated at 2010 comparative prices) reached 602.2 billion VND, an increase of 38.44% over the same period last year.

The main reason for this growth is that businesses have invested in innovating technological lines, focusing on deep processing of key products such as plywood, lead, zinc and iron ore concentrates, helping to increase export value. Some industrial products have increased sharply such as: Peeled wood increased by 106.08%; ready-mixed concrete increased by 57.65%; bricks of all kinds increased by 34.82% over the same period.

Although the province's industrial sector in the first quarter had impressive growth, this recovery and growth momentum is facing many challenges both domestically and internationally. Many businesses have not yet reached maximum capacity due to the lack of long-term orders from the EU and the US; especially the great obstacle from the new trade tax policy from the US.

Mr. Hoang Van Khoi - Head of the Provincial Industrial Park Management Board said that from the production and business results in 2024, the export turnover value of Thanh Binh Industrial Park is about 20 million USD, of which the export value to the US market is about 9 million USD, specifically for flooring products is about 5.1 million USD and plywood products is about 3.9 million USD. With the US Government announcing the tax rate on Vietnamese goods exported to the US (46%), it has seriously affected the operations of businesses in Thanh Binh Industrial Park. According to a survey of businesses, many partners have canceled orders and reduced quantity. In particular, for flooring products, partners have currently canceled all orders, businesses will have to temporarily stop production to find new markets.

According to the assessment report of the Department of Industry and Trade, the application of a tax rate of up to 46% by the US Government will have a direct impact on businesses in Bac Kan province, not only businesses exporting goods to the US market but also all businesses participating in the supply chain of goods serving exports such as raw wood, input products for mineral processing, food processing, garment, leather shoes, etc. This could cause Bac Kan's industrial growth rate in 2025 to decrease by about 1 - 2% compared to the target in the growth scenario of 13.5% or more.

In order for the industry to continue to maintain a high growth rate in the following quarters, the Provincial People's Committee has directed departments, branches and localities to focus on removing difficulties for enterprises; creating favorable conditions for existing industrial production facilities and new projects to go into stable production, exploit equipment capacity and investment efficiency. In particular, paying attention to supporting and urging new investment projects to speed up construction and put projects into operation such as: Thang Long Bac Kan Industrial Plywood Factory, expected to put 2 factories into operation from June 2025, expected in the last 6 months of the year, the production output will reach about 20,000 ^m3 of products equivalent to a production value of about 160 billion VND; The project to produce kitchen cabinets and quartz countertops will be put into operation from the third quarter of 2025, with an expected total industrial production value of about 125 billion VND.

At the same time, actively implement industrial cluster infrastructure projects; prioritize projects that are less dependent on the US market. Increase information provision for export enterprises in industrial parks to seek new markets such as the EU, India, ASEAN and increase domestic sales. Advise the Provincial People's Committee to organize meetings with enterprises exporting to the US to have timely support solutions.../.

Source: https://backan.gov.vn/Pages/cong-nghiep-bac-kan-tang-truong-manh-trong-quy-i2025-afc8.aspx