Production associated with business

The phrase “production and business” is so familiar that many people mistake it for one, but in fact these are two completely different concepts. However, the reason they often go together is because they are closely related, difficult to separate, and both are very important.

Basically, production is the act of creating a product. Business is bringing the product to the consumer through circulation on the market.

Thus, production without the support of business will not sell the products, leading to stagnation. Conversely, business without goods cannot be called business.

The story that many people are interested in is between production and business, which is more important, which is dominant?

Although it has just started operating (April 2024) in the field of designing and manufacturing electronic devices on demand, Lumi Vinh Phuc Factory (Thang Long 3 Industrial Park) has received many orders from large domestic and foreign partners, thereby bringing high profits to the business, ensuring good material and spiritual life for workers.

On this issue, economic theory books all talk a lot, talk deeply and talk thoroughly, but not everyone has time to study, or even if they do study, they may not understand deeply and thoroughly enough to be able to apply it in practice.

Solving this problem well not only benefits the business itself but also has an important impact on the macro economy.

For example, in Vinh Phuc and some other industrially developed provinces, why does the economy always have a high growth rate, large budget revenue and increase steadily every year? That is because these localities always focus on attracting production projects to invest in the area.

Only direct production can solve the problem of raw materials, labor and available infrastructure on site. Only processing production can increase the economic value of the product instead of selling the raw materials immediately.

In Vinh Phuc, with 9 industrial parks in operation, the vast majority of enterprises operate in the manufacturing sector, thereby contributing tens of thousands of billions of VND to the local budget each year.

However, to ensure stable production and sustainable development, the province pays special attention to the business and circulation of goods. Not only focusing on the domestic market, the province also expands its search to foreign markets, especially developed regions such as the US, Japan, Korea and some Western countries.

According to the assessment of the authorities, in the first months of 2024, although industrial growth in the province has recovered, in the context of slow recovery of global trade, high interest rates, declining investment and consumption, many businesses cannot access large and long-term orders, so production still faces many difficulties, and industrial growth in the province is not really stable and sustainable.

Specifically, industrial production activities in the area in the first months of the year continued to face many difficulties and challenges due to high prices of raw materials and input materials, increasing production and transportation costs, creating pressure on inflation control, and lending interest rates have decreased but not commensurate with the decrease in deposit interest rates. Meanwhile, the demand for our country's large and traditional export markets continues to decline... affecting the recovery of Vinh Phuc's industry.

The shortage of export orders is mostly in the groups of enterprises that manufacture and assemble electronic components and manufacture and assemble components for the automobile and motorbike manufacturing industry. Unstable orders and constantly changing human resources have significantly affected the product quality of some enterprises.

To remove difficulties for enterprises and create breakthroughs for industrial production in the coming months, the representative of the Department of Industry and Trade said that they will summarize the industrial production situation in the province and participate in the appraisal of industrial projects according to regulations. Organize the selection of investors in industrial clusters according to the plan. Along with that, strengthen the work of grasping and monitoring the production and business activities of enterprises in the province, continue to improve the effectiveness of inspection and evaluation of the results of implementing business infrastructure of industrial clusters in the area...

Striving to achieve the socio-economic growth target in 2024 in general and industrial development in particular, Vinh Phuc will strengthen solutions to remove difficulties, promote production and business activities, and create jobs for people. Resolutely disburse public investment capital according to the set plan, remove difficulties and obstacles, unlock resources, renew traditional growth drivers, promote economic development and industrial production in the area.

Regularly monitor to ensure budget collection progress, perform well tax registration, check, supervise tax declaration, payment, exemption, reduction, extension of taxpayers. Strictly manage tax refund to remove difficulties for businesses to have resources to recover, develop production, business...

Article and photos: Quang Nam

Source: https://baovinhphuc.com.vn/tin-tuc/Id/114798/San-xuat-gan-voi-kinh-doanh