Industry continues positive growth momentum

Production activities at Danang Rubber Joint Stock Company. Photo: MAI QUE

Recorded many improvements from businesses

In the first quarter of 2025, Hoa Tho Textile and Garment Joint Stock Corporation's sales and service revenue reached VND 1,277.5 billion, equal to 25.3% of the 2025 revenue target (VND 5,050 billion), up 8.3% over the same period in 2024; after-tax profit was VND 57.8 billion, up 29.6% over the same period (VND 44.6 billion). Mr. Nguyen Ngoc Binh, General Director of Hoa Tho Textile and Garment Joint Stock Corporation, said that since the beginning of the year, the Vietnamese textile and garment market has grown, orders have been stable, and demand and selling prices of the yarn industry have improved over the same period.

In addition, the company proactively controls production and business costs, which also contributes to improving financial efficiency compared to the same period. Currently, the unit continues to focus on market activities, exploiting diverse export markets; searching for and expanding raw material sources from other countries and developing domestic supply sources through forms of association with textile and dyeing enterprises. The company focuses on research and shaping in design, sample development, purchasing raw materials and accessories and perfecting the internal production supply chain to increase the value of garment products and enhance competitiveness.

Also recording positive production in the first quarter of 2025, Thuan Phuoc Seafood and Trading Joint Stock Company's revenue reached 663.3 billion VND, an increase of 2% over the same period in 2024 (647.3 billion VND), however, the company's after-tax profit increased quite well over the same period due to a 39% decrease in financial expenses.

According to Mr. Tran Van Linh, Chairman of the Board of Directors of Thuan Phuoc Seafood and Trading Joint Stock Company, the company is operating a factory with 2 workshops in the Da Nang Seafood Service Industrial Park and affiliated units in a number of provinces and cities across the country, with a maximum capacity of 7,300 tons of products/year. To ensure continuous production and boost business, at the end of 2024, the company will purchase new machinery and equipment including a shrimp boiling system with a capacity of 750kg/hour and an HQF hybrid freezing conveyor to replace the old freezing system and boiling machine with a total investment of nearly 6.6 billion VND.

Production activities at Thuan Phuoc Seafood and Trading Joint Stock Company. Photo: MAI QUE

Meanwhile, the net revenue of the first quarter of 2025 of Danang Rubber Joint Stock Company (DRC) reached 1,179.7 billion VND, down more than 18% compared to the same period last year despite increased output. The main reason was the sharp increase in input material prices, specifically raw rubber prices increased by 25-30% compared to the same period, in addition to increased sales and business management costs.

According to the company representative, DRC is implementing strategies to stabilize production and business activities. The company plans to expand its export markets to Europe, the Middle East and Africa to reduce its dependence on the US market. At the same time, the second quarter of 2025 will be more prosperous thanks to falling oil prices - an important factor in tire production.

All 4 industry groups grew

According to the report of the Da Nang City Statistics Office, the industrial production index (IIP) in April 2025 is estimated to increase by 7.4% compared to the previous month and 10.6% compared to the same period last year. Notably, all four main industry groups achieved positive growth rates.

Specifically: the manufacturing and processing industry group increased by 7.4% compared to the previous month and increased by 10.6% compared to the same month; the production and distribution of electricity, gas, hot water, steam and air conditioning achieved good growth with an increase rate of 4.5% compared to the previous month and 11.1% compared to the same month; the water supply, waste and wastewater management and treatment industry group increased quite strongly with 17.9% compared to the previous month, 10.7% compared to the same period, showing that the demand for water supply and environmental treatment services is increasingly focused; mining activities increased by 3.6% compared to the previous month and increased by 8% compared to the same month in 2024.

In the first 4 months of 2025, the IIP index increased by 11.7% compared to the same period in 2024. This is a quite impressive growth rate and basically close to the growth target set by the City People's Council resolution. The increase in the number of export orders in the first months of 2025 has boosted the industrial production index in a number of industries such as: production of non-metallic mineral products increased by 34%, wood processing and wood products increased by 29.7%, production of drugs, pharmaceuticals and medicinal materials increased by 28.8%, production of rubber products increased by 26%, production of motor vehicles increased by 25.9%... In addition, a number of factories expanded their production scale, contributing to increasing the volume of product production in the area.

According to the Department of Industry and Trade, the city aims to increase the industrial production index by 11-12% in 2025 compared to 2024; the export growth rate in 2025 is expected to reach 8-9% compared to 2024. To achieve the above target, the growth rate for some key export items in 2025 is expected to be: textiles 7.8%; seafood 8%; handicrafts and wooden furniture 6%; children's toys 5%; finished rubber 9.6%; engines, electrical equipment and electronic products up 9.2%. Regarding solutions, the city identified promoting production and import-export enterprises as the most important issue that needs to be promoted, focusing on the following groups of solutions: developing production and expanding markets; developing logistics; reforming administrative procedures; developing human resources.

According to Ms. Le Thi Kim Phuong, Director of the Department of Industry and Trade, it is forecasted that production and business activities of enterprises in most industries and fields will still face many challenges due to unpredictable factors of the world economy. The Department is closely coordinating with the focal point of the Ministry of Industry and Trade to promptly update information to enterprises on tariff regulations, trade barriers, and technical standards from key export markets to help production, import and export enterprises adapt to the volatile market context.

At the same time, the department continues to implement industrial promotion projects to support enterprises and rural production establishments in converting production lines and equipment to improve productivity, product quality, ensure the environment and production efficiency; support enterprises in building and registering trademark protection to facilitate the promotion of domestic consumption.

CINNAMON

Source: https://baodanang.vn/kinhte/202505/cong-nghiep-tiep-da-tang-truong-tich-cuc-4006688/