Processing and manufacturing enterprises expected to speed up

VCN - Thanks to many factors from the external and internal economy, many processing and manufacturing enterprises are not only recovering production but also accelerating, bustling with domestic and export orders. Therefore, continuing to expand investment, taking advantage of opportunities is an issue that businesses in this industry must focus on.
Da Nang Customs confirms 31 export processing enterprises eligible for inspection and supervision Da Nang Customs confirms 31 export processing enterprises eligible for inspection and supervision
Policy recommendations to ensure competition in fertilizer sector Policy recommendations to ensure competition in fertilizer sector
'Break the ice' for manufacturing enterprises through digital transformation 'Break the ice' for manufacturing enterprises through digital transformation
Processing pineapple at Dong Giao Food Export Joint Stock Company. Picture for illustration: VNA
Processing pineapple at Dong Giao Food Export Joint Stock Company. Picture for illustration: VNA

Huge space for growth

According to the Ministry of Industry and Trade, the added value of industry increased by 7.07%, higher than the growth rate of the whole economy (up by 5.03%) and higher than the growth rate of the same period last year (up by 6.44% in the first quarter of 2021), contributing 2.42 points to the growth rate of the total added value of the whole economy.

The processing and manufacturing industry continued to play a leading role in the growth of the economy with an increase of 7.79%, contributing 2.05 points.

In particular, in exports, the group of processed industrial products continued to make an important contribution to the overall growth rate of export activities with a turnover in the first quarter of 2022 reaching US$76.18 billion, up by 11.6% compared to the first quarter of 2021 and accounting for 86% of the total export turnover.

Explaining the reason why production and export of the processing and manufacturing industry has accelerated, from a business perspective, Than Duc Viet, General Director of Garment 10 Corporation, said that the current market situation is better than in 2020 and 2021, even surpassing the production capacity of enterprises.

All traditional items of May 10 are fully booked until the end of June 2022. Even some items such as vestons had closed orders until the end of September 2022, while one year ago, they could only operate at 30% of their production capacity.

Similarly, a representative of Northern Company Limited, said that in the first quarter of 2022, all workers went to work to ensure a capacity of up to 14 million products per year. Effective disease control and openness in freight and logistics along with investment in more equipment have accelerated production progress and improved product supply capacity.

In particular, many businesses also believe that, in the first quarter of 2022, businesses take a long time due to the long Tet holiday and complicated pandemic situation, so the quantity of goods produced is still lower than the actual capacity.

Moreover, Vietnamese businesses can also make good use of Free Trade Agreements (FTAs) to boost exports. Therefore, there is still a lot of room for growth in this industry. It is expected that from the second quarter, production activities will stabilize, and output and revenue will increase.

The results of the survey on business trends of enterprises in the processing and manufacturing industries by the General Statistics Office show that enterprises are optimistic about the situation of production and business in the second quarter of 2022, with 82.3% of enterprises assessed that it would be stable and better compared to the first quarter of 2022.

Expand, increase productivity

Recently, in the Action Program to restructure the economy for the period 2021-2025, the Government set a target of an average labor productivity growth rate of over 6.5% per year, of which the labor productivity growth rate processing and manufacturing industry reached 6.5-7% per year.

Therefore, many businesses have focused on investing tens to hundreds of billions of VND to build processing factories and warehouses to improve productivity and quality to meet export requirements.

For example, Dong Giao Foodstuff Export Joint Stock Company has invested in building Doveco Son La Fruit and Vegetable Processing Center. This is a deep processing complex with a total capacity of 52,000 tons of products per year, including three lines with modern equipment and technology.

The project is put into operation to ensure the consumption of more than 500,000 tons of vegetables and fruits (mango, passion fruit, avocado) per year in the province.

Not only to increase production capacity but also with the desire to become a partner of large technology corporations and participate in the global value chain, a representative of Pavonine Vina Co., Ltd. said that in 2022, the company plans to process about 2 million products, an increase of 30% compared to 2021 and the company has orders until the end of 2022. Therefore, the business has been planning to invest in more machinery in the production line system to increase capacity by 30%.

However, according to businesses, in order to develop more smoothly, businesses still need more support. For example, according to the Vietnam Steel Association, management agencies need policies to encourage investment, promote and protect domestic steel production as well as support enterprises in applying trade remedies to protect domestic production, responding to trade remedy lawsuits.

In addition, experts also said that many export products of Vietnam that are dependent on imported materials will be affected by the price of basic goods and freight rates, which have not shown any signs of decreasing, causing input prices to continue to rise.

Therefore, the Ministry of Industry and Trade said that it will continue to implement solutions focusing on removing difficulties for production and business enterprises, restoring production, supply chains, and broken value chains, supporting enterprises in finding export and import markets for raw materials, fuels, materials, and spare parts. Along with that, focus on adjusting the industrial growth model from mainly based on quantity to based on productivity, quality and efficiency, promote the development of industries and industrial products with high added value and large export value; while linking production with industrial service development.

By Binh Nam/ Kieu Oanh

Related News

Opportunity to accelerate agricultural export to China

Opportunity to accelerate agricultural export to China

VCN - For many years, China has been Vietnam's largest trading partner. Trade between Vietnam and China has maintained a stable and sustainable growth momentum.
How is Vietnam-US trade under two Trump elections?

How is Vietnam-US trade under two Trump elections?

VCN - In the first nine months of 2024, Vietnam-US trade reached nearly US$100 billion, nearly three times higher than the same period in 2016 - the first year Donald Trump was elected President of the United States.
Which authorities have the right to request taxpayer information?

Which authorities have the right to request taxpayer information?

VCN - The General Department of Vietnam Customs has recently issued a response to the Asset Valuation Council for Criminal Proceedings of An Giang Province concerning the provision of information on imported goods prices for asset valuation purposes.
Positive outlook for pangasius exports in the final months of the year

Positive outlook for pangasius exports in the final months of the year

VCN - With growth in pangasius exports to multiple markets showing positive trends, businesses are forecasting an optimistic outlook for exports in the final months of the year.

Latest News

Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surplus value recorded a spectacular increase year on year.
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

VCN - According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.

More News

Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Read More

Your care

Latest Most read
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surp
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Mobile Version