Investment News


The resilience of the processing and manufacturing industry

30/11/2023

 

 

With the right direction, strategic vision, and steadfast goals, over the past 10 years of implementing economic restructuring from "brown" to "green", the province has focused on leadership and prioritized resources to boost revenue. Attract investment and develop the processing and manufacturing industry, considering this as one of the three pillars of the economy. Thanks to that, this important economic sector has had steady development, gradually affirming its driving role in the province's socio-economic development; Actively contribute to the goal of turning Quang Ninh into a modern service and industrial province, one of the dynamic and comprehensive development centers in the Northern region in the period 2020-2025...

Correct direction, strategic vision, steadfast goals

Quang Ninh is one of 7 localities located in the Northern Key Economic Region. During the period 2011-2020, the province's industry always remained in the top 10 localities with the highest contribution to the total added value of the country's industry. By 2020, the province's industry will contribute about 3.9% of added value, ranking 8th out of 63 provinces and cities. During this period, the province's IT industry had a fairly high growth rate, about 13%/year. At this time, the main industry groups: Textile and garment products - leather and footwear; mechanical engineering and metal production; Processing wood, paper, forest products... has the highest growth rate, largely contributing to the trend of gradually increasing the proportion of the province's CNCC industry...

Recognizing the importance of developing CNCBCT for the development of the province in the new period, the Provincial Party Committee focuses on leading, directing, and proposing programs and plans to promote the development of CNCBCT in the area. conscious. Continuing the development strategy, immediately after the 15th Congress of the Provincial Party Committee (term 2020-2025), the Provincial Party Committee issued Resolution No. 01-NQ/TU on rapid and sustainable development of the CNCBCT industry in the period 2020-2025, orientation to 2030 - First resolution of the new term. Quang Ninh sets a goal that by 2025, the IT industry will account for over 15% of GRDP, with an average value growth rate of 17%/year, attracting a total investment capital of over VND 50,000 billion, creating at least 30,000 jobs. new job; Strive by 2030, the proportion of the high-tech industry will account for 20% of GRDP, the average value-added growth rate will be 20%/year, attracting a total investment capital of over 100,000 billion VND, creating over 50,000 new jobs. …

The proposed resolution was assessed by leading experts in macroeconomics, domestic and foreign businesses and investors as being extremely consistent with the practical and objective requirements of Quang Ninh's development process during the period. new phase, in the context of the severe impact of the Covid-19 pandemic, leaving many difficulties and challenges for the province's key economic sectors, tourism and services. The resolution is in line with the trend, demonstrating the new vision and new thinking of the Provincial Party Committee for the 2020-2025 term. The decisions stated in the Resolution demonstrate scientific nature and are a set of tools that can be immediately put into implementation.

Following closely the Resolution of the 15th Congress of the Provincial Party Committee and Resolution No. 01-NQ/TU, the Party Committee of the Provincial People's Committee directed the Provincial People's Committee to develop and promulgate Action Program No. 01/CTr-UBND dated April 4. January 2021 implementation of Resolution. It sets out 38 tasks belonging to 8 solution groups; Assign tasks to departments, branches and localities for implementation. The province determines that the key task is to quickly and sustainably develop economic zones and industrial parks to create a driving force to attract investment and develop CNCCCT; Mobilize all resources to focus on perfecting a synchronous and modern technical and social infrastructure system to ensure connectivity and comprehensiveness, meeting the requirements of rapid development of industry in general and CNCBCT in particular. and sustainable…

Step by step realizing those goals, through many different resources, Quang Ninh has focused on perfecting infrastructure to attract investment, create conditions for businesses to develop production, and ensure smooth trade. goods. In particular, transportation infrastructure has always been identified by the province as the key to development. In the past 3 years, the province has completed a series of dynamic traffic projects, such as: Ha Long - Hai Phong, Ha Long - Van Don, Van Don - Mong Cai, Ha Long - Cam Pha coastal road..., aiming to shorten the distance between localities, strengthen regional links, and promote socio-economic development.

Empowered to be a pillar of sustainable growth, the province constantly promotes, attracts investment, and develops technical infrastructure of industrial parks and economic zones. From a province with industrial park and economic zone infrastructure in the lowest group in the country, Quang Ninh has now completed the construction of 6 industrial parks with synchronous and modern technical infrastructure; step by step towards the goal of completing 16 Industrial Parks and 5 Economic Zones according to the Development Orientation Plan for Industrial Zones and Economic Zones approved by the Prime Minister. The province develops industrial parks in the direction of ecological industrial parks, specialized industrial parks, reducing general industrial parks, attracting hundreds of secondary investors with domestic and foreign investment capital. Up to now, the province has begun to form a high-tech textile industry chain at Hai Ha Seaport Industrial Park (phase 1); automobile manufacturing industrial chain in Viet Hung, Song Khoai, Dong Mai, Bac Tien Phong Industrial Parks (Quang Yen Town); Industrial chain of mechanical manufacturing and assembly of electrical and electronic equipment in Dong Mai Industrial Park, Song Khoai Industrial Park... with many large corporations capable of investing, such as TCL, Foxconn, Jinko Solar...

To reassure investors and call for resources into the IT industry, the province promotes reform of administrative procedures in the field of investment and administrative procedures that directly impact the production and business activities of enterprises, such as land and construction. , customs duty…; promptly propose amendments and annulments to inadequate legal provisions and legal procedures to promptly remove difficulties and obstacles and support investors; Accelerate site clearance progress to implement the project... At the same time, the province builds, maintains and promotes the effectiveness of pioneering models and breakthrough methods such as public administrative centers at all levels, promotion and support agencies. provincial investment, a special working group to support businesses and investors, the "Business Cafe" model and business meetings... Thereby being proactive in approaching, promoting and solving problems. Obstacles of large projects in the CNCBCT industry; selectively attract high-quality FDI projects into high-tech IT industries.

At the ceremony of awarding the Investment Registration Certificate for the Jinko Solar Hai Ha Vietnam Photovoltaic Cell Technology Complex Project held in mid-October, Mr. Tran Kinh Vi, General Director of Global Operations Jinko Solar Group, shared: In Song Khoai Industrial Park (Quang Yen Town), our Group has invested in 2 projects with a total investment of nearly 900 million USD, completing a chain of large-scale solar panel production lines. large in the province. Quang Ninh has become a locality that plays a very important role in Jinko Solar's production chain globally as the factory operating in the province currently accounts for about 50% of the Group's total production products in the country. outside. The effective and practical companionship and support of Quang Ninh province recently, along with the positive points in administrative reform to improve the business investment environment, are the deciding factors. for the Group to continue to choose Quang Ninh as the investment location for the Jinko Solar Hai Ha Vietnam photovoltaic cell technology complex project with a total investment of up to 1.5 billion USD and possibly other projects. Future.

Step by step affirm the role of motivation

In 2019, Foxconn Group - one of the "big men" of the CNCBCT industry, implemented its first project in Quang Ninh with the S-Vietnam factory producing liquid crystal display modules and electronic circuit boards, in Dong Industrial Park. Mai (Quang Yen town), total investment capital is more than 137 million USD. After a period of stable production and business activities, in June 2023 Foxconn continued to invest in 2 more projects in the field of CBCT in Song Khoai Industrial Park: Foxconn Quang Ninh FMMV Factory, area of 4.1 hectares, total investment capital of about 46 million USD, manufacturing and processing components and component molds of IT products and communication products; FECV Foxconn Quang Ninh factory, area of 6.3 hectares, total investment capital of about 200 million USD, producing and assembling electronic components, electric chargers, and electric vehicle charging controllers. So up to now, Foxconn has 3 projects in the field of CNCBCT investment in Quang Ninh, with a total registered investment capital of more than 383 million USD, accounting for about 1/10 of Foxconn's investment scale in Vietnam.

Jinko Solar - the world's largest and most advanced solar panel manufacturing group, also chose Quang Ninh as the investment location for billion-dollar CBCT projects. In January 2022, Jinko Solar Vietnam silicon panel technology project, with a total investment of more than 365 million USD, launched its first product, just nearly 4 months after being awarded the Investment Registration Certificate. In October 2023, Jinko Solar PV Vietnam photovoltaic cell technology project, with a total investment of nearly 500 million USD, officially went into production operation after more than 2 years of construction. When operating at 100% capacity, Jinko Solar's project will generate an estimated revenue of more than 100,000 billion VND (4.37 billion USD). After the preferential period, the project will contribute to the budget about 1,400 billion VND/year (62 million USD/year) through corporate income tax. At the same time, creating stable jobs for about 4,500 workers with an average salary of about 13 million VND/person/month. Realizing the outstanding potential and competitive advantages of Quang Ninh province, especially the province's priority orientation in attracting investment into the CNCC industry, Jinko Solar continues to "pour" billions of dollars into the province with the Complex Project. Jinko Solar Hai Ha Vietnam photovoltaic cell technology, total registered investment capital of 1.5 billion USD, bringing the Group's total investment in Quang Ninh to nearly 2.5 billion USD...

 Electronic and television components production line belongs to Foxconn Group's S-Vietnam project.

Quang Ninh is currently the investment location for large projects of a series of leading enterprises in the CNCBCT industry. Projects include: Manufacturing safety products for cars and motor vehicles (in Song Khoai Industrial Park), total investment of 154 million USD, design capacity of 10 million products/year of Autoliv Vietnam Co., Ltd., part of Autoliv Group - the world's leading corporation in researching and manufacturing automotive safety equipment; Car manufacturing and assembly factory complex (in Viet Hung Industrial Park), total investment capital of more than 8,600 billion VND, of Thanh Cong Group, in cooperation with Škoda Auto of the Czech Republic to assemble and produce commercial cars the first Škoda brand in Vietnam and Southeast Asia; Projects in the field of fibers in Hai Ha, Viet Hung, Hai Yen Seaport Industrial Parks...

With a series of high-caliber projects from famous and potential investors, the CNCBCT industry is achieving many positive results, increasingly affirming itself as an important industry in the economy; is the main pillar and driving force for sustainable growth of the province. Up to this point, the whole province has nearly 1,100 enterprises operating in the field of CNCBCT with a total registered capital of over 175,000 billion VND. In particular, the area outside the economic zones and industrial parks has 980 enterprises, with a total registered capital of over 15,000 billion VND, creating jobs for over 75,800 workers. In economic zones and industrial parks, there are 118 CNCBCT projects, total registered investment capital of over 160,000 billion VND (82 FDI projects, total registered capital of 4.213 billion USD; 36 domestic investment projects, total registered capital of nearly 60,300 billion VND).

In 2021, the proportion of the CNCC industry in the GRDP structure will reach 11.3% (up 1.5% compared to 2020); 2022 reaches 11.5% (up 0.2% compared to 2021); In the first 9 months of 2023, it will be 11.6%, gradually moving towards the set goal of accounting for 15% of GRDP by 2025. The industry growth rate in 2021 is 30.73% (nearly double the rate of 17% in 2020); 2022 reaches 16.54%; 9 months of 2023 reaches 11.77%. On average in 3 years, the growth rate reached 19.68%/year, higher than the average level set out in Resolution No. 01-NQ/TU of 17%/year. Attracting investment capital in the CNCBCT industry in the last 2 months of 2020 and 2021 reached VND 31,700 billion; In 2022, it will reach 12,860 billion VND; 9 months of 2023 reaches 60,300 billion VND. Accumulated to date has reached nearly 105,000 billion VND, of which FDI capital reached over 2,347 billion USD. After 3 years, attracting investment capital reached 210% of the set target of 50,000 billion VND by 2025 (average 10,000 billion VND/year). The total number of employees in the CNCBCT industry increased by over 23,886 people, reaching nearly 80% with the goal set by Resolution No. 01-NQ/TU to create 30,000 new jobs by 2025...

In the first 9 months of 2023, 15/21 industries in the field of CNCBCT have an increase in index compared to the same period in 2022, typically: Bed, cabinet, table, and chair manufacturing industry increased by nearly 240%; The manufacturing industry of rubber and plastic products increased by nearly 165%; Electrical equipment manufacturing industry increased by more than 112%; The drug, chemical and pharmaceutical manufacturing industry increased by nearly 92%; Apparel manufacturing industry increased by nearly 40%; The chemical and chemical product manufacturing industry increased by nearly 18%... Some CNCBCT products in the first 9 months of 2023 also increased over the same period, such as: Bottled beer increased by 25.7%; pure water increased by 13.5%; Suits , ensembles, jackets, pants, overalls, and shorts for adults not knitted or crocheted increased by nearly 60%; Vinil Tines floor panels increased by 214.5%; Silicon panels increased by 110.2%; nearly 850,000 smart bracelets...

With the initial achievements achieved, in the new period, the province is continuing to set higher goals and tasks in developing CNCCBCT. Quang Ninh strives from now until 2025 to each year attract about 2 billion USD into the CNCBCT field and create new jobs for over 20,000 workers or more. In the period 2026-2030, strive to attract 3 billion USD each year, creating jobs for 30,000 workers or more. CNCBCT's annual contribution to GRDP by 2025 is about 20%. The annual growth rate of the CNCBCT industry reaches 20% or more...

Song Ha