Building worthy policies to serve as a "pedestal" for the processing and manufacturing industry

The processing and manufacturing industry currently accounts for approximately 97% of the province's industrial production value and 90% of its export turnover. To promote the strong and in-depth development of the processing and manufacturing industry, in 2022 the Provincial People's Committee approved the Thanh Hoa Province Processing and Manufacturing Industry Development Plan until 2030. However, the mechanisms and policies to support the development of this industry have yet to be approved, making it difficult to achieve the desired results in the implementation of the goals.

Building worthy policies to serve as a Mechanical products are given priority for development in the Thanh Hoa Province Processing and Manufacturing Industry Development Plan until 2030.

According to the plan, Thanh Hoa province will develop its processing and manufacturing industry by expanding and investing in new industries, supplementing heavy industries while simultaneously expanding, modernizing, and increasing the efficiency of light industries; thereby gradually increasing the proportion of high-tech, deeply processed, and export-oriented products. Industries prioritized for development will be grouped as follows: mechanical engineering, electronics, and metal production; chemicals, rubber, and plastics; building materials production; food and beverages; textiles, garments, and footwear; and forestry product processing.

Specifically, for the mechanical engineering, electronics, and metal manufacturing sectors, the focus will be on developing high-tech mechanical engineering, electronics, and metal products, developing supporting industrial products for the mechanical engineering, electronics, and metal manufacturing sectors to serve automobile assembly and the mechanical manufacturing industry; attracting investment in mechanical engineering, electronics, and metal manufacturing in the Nghi Son Economic Zone and industrial parks. The chemical, rubber, and plastics sectors will attract new projects and expand existing ones, such as: investing in the expansion of phase 2 of the Nghi Son Refinery and Petrochemical Plant; increasing the Nghi Son Refinery and Petrochemical Plant's capacity to approximately 20 million tons of crude oil per year; and continuing to attract projects processing petrochemical products such as propylene, PET synthetic fibers, DAP fertilizer, polyethylene, and paraxylene. Accelerate the implementation of Project No. 1 - Duc Giang Chemical Complex in Nghi Son Economic Zone, with a capacity of 136,000 tons of products per year; invest in expansion and investment in Project No. 2 and Project No. 3, bringing the total capacity of all three projects to 386,000 tons of products per year...

For the construction materials manufacturing sector, investment will be completed and five cement plants will be put into stable operation; investment in technological innovation for the exploitation and processing of export stone will continue to be promoted, maintaining a production volume of approximately 25 million m2/year, and encouraging construction materials factories to continue innovating technology and increasing capacity. For the textile and footwear sector, investment will be attracted to garment and footwear projects in the midland and mountainous areas; at the same time, garment and footwear businesses will be encouraged to innovate technology to increase capacity and product quality; and investment will be attracted to supporting industrial projects for the textile and footwear sectors with modern technology and environmental protection to provide local raw materials for the province's garment and footwear industries.

With specific orientations, Thanh Hoa province aims for a growth rate of industrial value added of 16.1% in the 2021-2025 period; 11.4% in the 2026-2030 period; and a total of 13.7% for the 2021-2030 period. By 2025, the value added of the processing and manufacturing industry is targeted to reach VND 70,000 billion, and by 2030, VND 120,000 billion.

To successfully implement the project, in addition to solutions related to infrastructure investment, improving the investment environment, mobilizing resources, and developing human resources, Thanh Hoa province has developed and proposed policies to support the development of the province's industrial sector, especially in the processing and manufacturing industries.

Building worthy policies to serve as a The petrochemical refining industry is oriented towards continued expansion and development of new, high-value-added petrochemical products.

Accordingly, in addition to the estimated investment capital from businesses in the 2021-2030 period of approximately 315,000 billion VND, the plan also directs the allocation of approximately 1,760 billion VND in state budget support over 9 years (2022-2030), of which 1,665 billion VND will be from the central budget and 95 billion VND from the provincial budget. Furthermore, the provincial government's support for industrial and handicraft development, as stipulated in Resolution No. 121/2021/NQ-HĐND dated October 11, 2021, of the Provincial People's Council, which promulgates several policies to encourage industrial and handicraft development in Thanh Hoa province for the 2022-2026 period, is expected to be approximately 200 billion VND, focusing on supporting investment in industrial cluster infrastructure and investment in processing and manufacturing projects in mountainous areas.

Immediately after the Thanh Hoa Province Processing and Manufacturing Industry Development Plan until 2030 was issued, the Department of Industry and Trade advised the Provincial People's Committee to submit a proposal for mechanisms and policies to attract and expand the province's strong industries, focusing on energy and processing and manufacturing industries. However, the policy has not yet been approved. In addition, the policy from Resolution No. 121/2021/NQ-HĐND dated October 11, 2021, of the Provincial People's Council, issued in 2021, has also not attracted businesses or investors due to difficulties in meeting the set criteria.

With the major goal of creating a structural shift within the industrial sector, forming industries with high technological content and specialization, and making Thanh Hoa one of the major industrial centers of the North Central region and the whole country, paying attention to and developing support policies in the processing and manufacturing industry is truly necessary. These policies not only provide capital support and share the burden with businesses, but also serve to encourage and promote the State's partnership with investors on their development path. Furthermore, the policies researched and enacted must be feasible in implementation, facilitating access and meeting the needs of investors when put into practice.

Text and photos: Tung Lam

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