Industry - the driving force behind double-digit growth.

BAC NINH - Despite the weakening global economic outlook, Bac Ninh province remained among the top performers nationwide in economic growth during the first months of the year, reaching 9.82%. However, this result is still a shortfall from the annual target of 12.5%.

Given that public investment has not met expectations and agricultural growth has been affected by a more than 50% drop in lychee production, maximizing the potential of the industrial sector to boost growth is a key solution.

Production optimization

According to the head of the Department of Industry and Trade, in the first months of the year, the province's industrial production activities were affected by the US tariff policy and pressure from increased input costs due to fluctuations in energy supply.

Thanks to effective management and the timely adaptability of businesses, industrial production continues to maintain a fairly strong growth momentum.

Production line of Microsoft Mobile Vietnam Co., Ltd.

The total industrial production value in the first four months of the year reached over 1 trillion VND, an increase of 14.6% compared to the same period last year. Of this, the foreign-invested economic sector accounted for 940,722 billion VND, an increase of 14.9%; the state-owned economic sector accounted for 4,608 billion VND, an increase of 14%; and the non-state economic sector accounted for 60,361 billion VND, an increase of 10%.

To achieve the government's target of 12.5% ​​economic growth (GRDP), the industrial and construction sectors need to grow by 15.1% (industry by 13.7%, construction by 45%), generating a value of approximately over 2.82 trillion VND; services need to grow by about 7.8%; agriculture, forestry, and fisheries need to grow by 1.3%; and product taxes need to increase by 5.8%.

Having overcome the fluctuations of the first quarter, in April, production activities at many businesses were optimized, orders tended to improve, helping to increase output, and the total value of industrial production in the month reached 277,807 billion VND.

The manufacturing industry – a key sector – increased by 18%; the production and distribution of electricity, gas, hot water, steam, and air conditioning is estimated to increase by 3.66%. Beverage production increased by 29%, metals by 26%, electronics, computers, and optical products (up 22.5%), and pharmaceuticals, chemicals, and medicinal materials (up 20.2%).

For example, Fuhong Precision Component Co., Ltd. (Bac Giang), Dinh Tram Industrial Park, saw its April production increase 1.68 times compared to the same period last year; Microsoft Mobile Vietnam Co., Ltd. increased 1.35 times... Products with strong year-on-year increases include: Printed circuit boards (PCBs) estimated at over 80 million units, 1.21 times higher; peripheral devices estimated at 71.73 million units, a 1.75-fold increase...

Leveraging the strengths of the "backbone" industry.

With the presence of global corporations such as Samsung, Foxconn, and Amkor, the electrical and electronics industry is currently the "backbone" of Bac Ninh's double-digit growth strategy.

According to Mr. Ngo Van Tue, Deputy Head of Statistics of Bac Ninh province, in the first quarter, the province's GRDP reached 9.82%, ranking 5th nationwide. The industrial and construction sector is estimated to have increased by 11.59%, contributing 81.9% to the overall increase in added value of the economy.

Nam Vuong Technology Investment and Development Joint Stock Company (Dinh Bang Ward) operates in the production and business of supplying welding equipment and automation technology.

While the agricultural sector is experiencing a decline in output and the construction industry is slowing down due to fluctuating raw material prices, leading to delays in capital disbursement, the best solution to compensate for this shortfall is to maximize the potential of the industrial sector.

To achieve the government's target of 12.5% ​​economic growth (GRDP), the industrial and construction sectors need to grow by 15.1% (industry by 13.7%, construction by 45%), generating a value of approximately over 2.82 trillion VND; services by about 7.8%; agriculture, forestry, and fisheries by 1.3%; and product taxes by 5.8%.

Therefore, it is necessary to focus on developing the industrial sector to ensure higher growth than in recent years. In the first four months, the industrial sector generated over 1 trillion VND in value, with a target of 1.82 trillion VND remaining for the year.

Based on existing potential, achieving this goal is highly feasible thanks to solid foundations. Bac Ninh province attracted over $6.1 billion in investment capital in the first few months of the year. This included the approval of 121 new FDI projects, notably AEON Mall, Seojin, Soosan, Cooler Master, etc.

In particular, within the framework of the Vietnam-Korea Economic Forum, the province granted investment approval decisions and investment registration certificates to businesses from South Korea with a total capital of over 470.36 million USD, and several projects received certificates during the provincial leaders' overseas investment promotion trips.

Specifically, 27 large enterprises that have achieved stable production and expanded their operations, such as Samsung Electronics; Samsung Display; Fukang; Luxshare-ICT; Microsoft Mobile Vietnam; Goertek Vina; Canon; Amkor; Ja Solar… are expected to continue maintaining a growth rate of approximately 20-25%.

Long-term pillars

Bac Ninh province currently has over 51,000 operating businesses with a total registered capital of approximately 820 trillion VND, of which domestic businesses account for more than 90%. This is an important foundation for increasing the localization rate, enabling deeper participation in global value chains; and helping the economic structure reduce dependence on a few major manufacturing sectors.

Samsung Vietnam provides skills training for its workers.

According to Vice Chairman of the Provincial People's Committee Pham Van Thinh, the province has clearly defined its orientation for attracting FDI selectively and improving its quality. High-quality FDI flows are not simply based on capital size but must meet criteria regarding technological content, added value, level of linkage with domestic businesses, and commitment to establishing research and development centers right in the locality.

This will lay the foundation for building an ecosystem linking FDI enterprises and domestic businesses, aiming to increase the localization rate, enhance value, and ensure the sustainability of growth. Simultaneously, the focus will be on industrial development, supporting businesses and investors in expanding production, and bringing approved projects into operation as early as 2026.

This orientation aims to transform the province not only into a location for international corporations' factories, but also to foster Vietnamese technology businesses capable of competing in the global value chain.

Simultaneously, Bac Ninh focuses on developing fundamental industries such as high-tech electronics, precision mechanics, new materials, and especially the semiconductor industry, with the leading role played by large FDI corporations. It supports businesses in accessing, expanding, and boosting exports of key products, focusing on key and potential markets.

Facilitating business operations by accelerating customs clearance and reducing logistics costs. Simultaneously, conducting a comprehensive assessment of influencing factors; proactively and flexibly managing policies; and promptly addressing emerging issues to successfully achieve the 12.5% ​​growth target.

Thai Uyen

Source: https://baobacninhtv.vn/cong-nghiep-luc-day-tang-truong-hai-con-so-postid446174.bbg