Practical support for rural industrial production

Enterprises and rural industrial production households are supported with hundreds of millions of VND from capital sources of local industrial promotion programs, thereby providing timely support to improve the efficiency of production activities.

Workers operate an automatic edge banding machine at P.A.D. Art Design Joint Stock Company. Photo: TRAN TRUC

Workers operate automatic edge banding machines at PAD Art Design Joint Stock Company Photo: TRAN TRUC

Innovate to suit the market

To meet export demand, Hoa Binh Carton Packaging Production Company Limited (Hoa Cam Industrial Park, Cam Le District) has invested in a 4-color Flexo printing machine worth 3.8 billion VND, of which 300 million VND comes from industrial promotion capital. Previously, the company used silk-screen printing completely by hand, requiring a lot of labor to operate. Meanwhile, the new equipment helps the company's production process to be completely automated, minimizing labor, ensuring labor safety for workers; shortening the production process, integrating 4 functions (printing, embossing, slotting, cutting) in the same operating process. Along with that, on average, investing in a 4-color Flexo printing machine can help reduce waste by up to 90 tons per year.

Mr. Vo Thanh Son, Director of Hoa Binh Carton Packaging Production Company Limited, informed: “Every year, we produce 900 million products through export markets, mainly Europe and the United States. For the carton packaging industry in general, designs must be diverse and rich every day. Investing in cleaner machinery also helps meet the green standards of the European market. Although investing at the present time is very difficult, otherwise businesses will be quickly eliminated. In the context of the general difficulties of the economy , with the support of the city, the Department of Industry and Trade supports investment in equipment for businesses to catch up with the market, this is a valuable companion for us”.

From the 2023 industrial promotion fund, U&I Phuong Quan Production and Trading Company Limited (Duong Son village, Hoa Chau commune, Hoa Vang district) was supported with 441 million VND to invest in a new charcoal production system including: 2-ton sawdust saw machine; sawdust cage floor, 1-ton sawdust dryer, sawdust firewood press machine, and auxiliary equipment details. With a total cost of 2.2 billion VND, this system has a continuous burning time of 3-5 hours, 3-4 times longer than normal charcoal; helping to save time replacing charcoal, the amount of charcoal used and not interrupting meals, causing inconvenience to customers.

Mr. Phan Duy Phuong, Deputy Director of the company, said that the purpose of investing in this system is towards the future. Currently, this production model has a lot of potential, because of the demand for clean food or from restaurants, so the products are consumed very well. At this time, the products produced by the company are ordered a lot by the market, producing about 50 tons of coal per month but still not enough to meet the demand, so by 2024, the company will double its capacity.

Similarly, PAD Fine Arts Design Joint Stock Company (Phu Hoa 1 village, Hoa Nhon commune, Hoa Vang district) received support of VND 265 million from the industrial promotion fund and invested in an automatic edge banding machine with a total cost of VND 919 million. With this new equipment, the products manufactured by the unit save over 60% of processing time and labor in the stages until the finished product is completed. The operations are completed automatically with high precision, helping to limit the penetration of mold into wooden furniture, improving product quality, ensuring durability and beauty over time.

The most capital compared to previous years

These are 3 out of 9 enterprises and rural industrial production establishments receiving capital support for machinery and equipment (phase 1) under the 2023 Industrial Promotion Program in the city implemented by the Center for Industrial Promotion and Trade Promotion (Department of Industry and Trade). This phase, the total investment cost of the machinery and equipment support program under the local industrial promotion program is more than 10 billion VND. Of which, the industrial promotion support fund is more than 1.86 billion VND, and the capital contributed by enterprises is more than 8.13 billion VND. Mr. Le Thanh Ha, Director of the Center for Industrial Promotion and Trade Promotion, said that this year, the approval process for implementation projects is still slow, so the beneficiaries have encountered many difficulties in learning and signing contracts to purchase machinery and equipment with suppliers. In addition, although the installation of machinery and equipment has been completed, the beneficiary enterprises still have difficulty finding input materials and solving the output of the products.

“The implementation of the project to support the application of machinery and equipment in production will be a condition to help businesses improve production capacity as well as product quality, increase labor productivity, and develop new products. It can be seen that the support fund, although not much, has created a boost to support many businesses. We hope that this support will help businesses soon overcome the difficulties they are facing, especially in the current period,” said Mr. Ha.

According to the Department of Industry and Trade, the city has paid more attention to supporting the 2023 industrial promotion program with a budget of 4.5 billion VND, while in previous years the maximum was 3 billion VND. The Department has supported businesses in investing in machinery and equipment; registering exclusive trademarks; consulting on design and packaging; and participating in trade fairs to promote the trade market.

Deputy Director of the Department of Industry and Trade Nguyen Thi Thuy Mai said: “This is a great encouragement from the city for the industry and trade sector as well as enterprises and production establishments. With that funding source, the department has closely coordinated with the People's Committees of districts and towns to conduct surveys to select eligible units to participate in the program. The capital helps enterprises and production establishments create more resources to boldly invest in innovation of machinery, equipment and technology. Through that, it helps meet the increasingly stringent requirements of the market. The Department of Industry and Trade requests that the units receiving the capital need to exploit and promote effectively the supported machinery and equipment lines so that the company's business activities are increasingly stable; thereby contributing positively to the development of the locality as well as the city".

TRAN TRUC

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