Industry flourishes, maintaining its leading role in economic development

With the motto of taking industrial development as the foundation for economic development, the province has directed the timely and synchronous implementation of many solutions to remove difficulties for businesses and improve the investment and business environment. After negative growth in the first months of the year, by the end of November 2023, industrial production activities in the province improved again in all 3 indexes: Industrial production index (IIP) increased by 5.6%, consumption index of the processing and manufacturing industry increased by 8.4%, inventory index decreased by 1.2%.

Constantly innovating and upgrading product designs and quality, the production output of Toyota Vietnam Company in Vinh Phuc is expected to grow strongly in the coming time.

According to a recent survey by the Provincial People's Committee of more than 90 enterprises with large budget revenues in the province, in the field of automobile manufacturing, although the Government has had a policy to support the reduction of registration fees, and dealers also have many incentive programs, purchasing power is still decreasing.

In 2023, the province's automobile production output is estimated at 43.3 thousand vehicles, down 21.3% compared to 2022; of which, Toyota is estimated at more than 24 thousand vehicles, down 32.3%, Honda is estimated at more than 18 thousand vehicles, down 10.2%.

The motorbike manufacturing sector is also not very optimistic when the output of two large enterprises, Honda and Piaggio, both decreased compared to 2022, of which, Honda is estimated to reach more than 1.4 million vehicles, down nearly 9%; and Piaggio reached more than 190 thousand vehicles, down 23%.

On the other hand, the electronics industry has a positive growth rate with many bright colors. With about 200 enterprises operating in the field of electronic component manufacturing, overcoming the difficult period of the economy, many enterprises still maintain stable production scale, achieving a good growth rate compared to 2022.

Typically, Compal Vietnam Co., Ltd. increased by more than 9%; Solum Vina Co., Ltd. increased by more than 10%; Young Poong Electronics Vina Co., Ltd. increased by more than 14%; Vina Union Co., Ltd. increased by more than 26%; Jahwa Vina Co., Ltd. increased by 27%; Optrontec Vina Co., Ltd. increased by 45%; CDL Precision Co., Ltd. increased by 50%...

Faced with many difficulties in the domestic and international economic situation, from the beginning of the year, the province has directed departments, branches and localities to closely follow the directives, resolutions, and telegrams of the Government, and the guiding documents and instructions of the Central and the province to synchronously implement mechanisms and policies to support businesses, especially small and medium enterprises.

Focus on promoting administrative reform, improving the investment environment; strengthening dialogue activities with businesses to promptly remove difficulties and obstacles, creating favorable conditions for businesses to stabilize operations and develop production.

In administrative procedure reform, in the first 11 months of 2023, the province has shortened by at least 20% the processing time for more than 820 administrative procedures with a processing time of more than 10 working days; in which, many procedures related to enterprises have had their processing time reduced, such as procedures for granting investment certificates, procedures for examining investment certificates, etc.

Currently, all results of administrative procedure settlement on the provincial administrative procedure settlement information system have been digitized; more than 10,000 enterprises use digital platforms in management and operation; the rate of provincial-level administrative procedure settlement on time and before the deadline reaches 96%.

Through dialogues and understanding the production and business activities of enterprises, the Provincial People's Committee has directed the Department of Planning and Investment to propose solutions to reduce the time for granting business licenses and the time for carrying out procedures to extend contracts for bidding packages and projects for enterprises.

The Department of Natural Resources and Environment promotes digital transformation, handles administrative procedures online, creating favorable conditions in terms of time, procedures, and documents for businesses; the Provincial Tax Department promptly refunds value-added tax for businesses that meet the prescribed conditions, helping businesses supplement revenue for production.

The Department of Industry and Trade and the Provincial Business Association strengthen propaganda work, support businesses in finding and developing markets, and at the same time, coordinate with the Provincial State Bank and credit institutions to create conditions for businesses to access preferential loans according to regulations...

With the high determination of all levels and sectors and the efforts of the business community, the province's GRDP growth rate has gradually recovered each quarter.

Specifically, GRDP in the first quarter of 2023 decreased by 0.5% (one of 5 provinces and cities in the country with negative growth), however, in the first 6 months of 2023, the province's GRDP still increased by 1.7%, in the first 9 months of the year increased by 2.1% and it is estimated that in 2023, the province's GRDP growth rate will reach 2% - 2.5%.

In the industrial production sector, by the end of November 2023, industrial production activities in the province showed signs of recovery in all three indexes: Industrial production index (IIP) increased by 5.6%, consumption index of processing and manufacturing industry increased by 8.4%, inventory index decreased by 1.2%.

Investment attraction results are high, it is estimated that in 2023, the province will attract more than 560 million USD of FDI capital, an increase of 21% compared to 2022, exceeding 40% of the plan; attracting more than 20.6 trillion VND of DDI capital, an increase of 67% compared to 2022, 4 times higher than the 2023 plan.

It is expected that in 2024, the province will have 3 more industrial parks in operation, FDI projects have been licensed by the province to come into operation with a total registered capital of more than 5 million USD.

The National Assembly has approved a proposal to extend the 2% reduction in value-added tax applied to goods and services currently subject to a 10% tax rate until the end of June 2024; the Chinese market has reopened, helping businesses find sources of raw materials at reasonable prices, especially in the field of electronic components manufacturing...

With the province's efforts in effectively implementing mechanisms and policies to support businesses, the industrial sector will soon recover and develop strongly, continuing to maintain its role as a "locomotive" in the province's economic development.

Hoang Son

Source