After more than 22 years of re-establishment, the industrial sector of Soc Trang province has witnessed significant growth. The sector is determined to develop the cleaning industry to lay the groundwork for sustainable economic development. Vietnam Business Forum has an interview with Mr Ngo Minh Trang, Director of the Department of Industry and Trade of Soc Trang province, on solutions to achieve this goal. Phuong Hang reports. Could you please introduce the achievements that the industrial sector of Soc Trang province has attained in the past 22 years?
In spite of existing difficulties 22 years after re-establishment, with the close guidance of the Provincial Party Committee and the Provincial People’s Committee and the close coordination of agencies and localities, specially the effort of the business community, the industrial sector of Soc Trang province has made important achievements and actively contributed to economic restructuring and employment generation. Specifically, industrial production value climbed from VND478 billion in 1992 to VND8,269 billion in 2013, representing an increase of 17.3 times and annualised growth of 14.54 per cent in the 1992 – 2013 period. The value was estimated to reach VND8,400 billion in 2014, an increase of 17.57 times against 1992 and the annual average growth of the 1992 – 2014 period was hoped at 13.92 per cent.
Seafood processing is the leading sector with 90 per cent of the province’s export turnover. Would you mind telling us the advantages of the seafood processing industry?
Processing industries in general account for over 97 per cent of the province’s industrial production, and the seafood processing is a key sector. With the robust development of commercial fishing and aquaculture, seafood processing sector has rapidly developed since 1996. In 2001, the province had four seafood processors with a combined capacity of 18,000 tonnes a year but it now has 10 processors with a total capacity of 120,500 tonnes. Most seafood processors have invested advanced technologies and production lines to create competitive products in both domestic and international markets. The province’s key export markets are Japan, the United States, the European Union, Canada and South Korea. Frozen shrimp production expanded from only 599 tonnes in 1992 to 21,878 tonnes in 2002 and 41,332 tonnes in 2013.
How has the province focused on planning sustainable material zones for processing industries?
Ensuring stable material supplies for processing industries in general and frozen shrimp processing industry in particular is extremely important, even decisive. Therefore, the province pays special attention to this issue. In 1992, the fish farming area in the province was just 19,799 ha but it was expanded to 68,250 ha in 2013, of which shrimp farming area was 46,028 ha, mainly concentrated in four districts of Vinh Chau Town (23,634 ha), My Xuyen district (17,166 ha), Tran De district (3,354 ha) and Cu Lao Dung district (1,455 ha).
Together with material zone planning, the Provincial People’s Committee has mobilised all sectors to develop irrigation systems and electric works. Moreover, provincial agencies provide technical support and new, modern farming practices for fishermen to ensure quality and food safety. The province also actively organises trade promotion activities to seek output markets for products.
In spite of having strong development in production technologies, agro-fisheries processing industries, especially seafood processing sector, do not meet the potential. What are the reasons for this?
Since the province was re-established, industrial production has expanded substantially, especially seafood processing. Nevertheless, the development of seafood processing is incommensurate with the available potential because of some major causes in the following. Regarding aquaculture, farmers lack capital to build self-contained production facilities, watering works and power networks. A few seafood processing firms are still using technologies and equipment invested in the 1990s. Furthermore, enterprises do not pay due attention to investing in material zones. Most of them have not added farmers to their production chains to ensure stable input supply, resulting in their seasonal production. In addition, export markets are volatile because of increasingly stringent technical barriers erected by importing countries. Exporters fail to control their exports because of weak market forecasts and insufficient business knowledge. Unusual weather, complicated disease outbreak also destabilise the confidence of farmers.
In order to gradually raise the industrial production value, enterprises must change technologies and production processes, replace machinery and equipment and diversify products. How has the province supported enterprises in this regard?
Soc Trang province has applied some business support policies like enterprises’ productivity and product quality improvement project and SME development project. The Department of Industry and Trade has also approved some policies to support enterprises. In industrial promotion, the department supported 109 projects with a total budget of VND18.8 billion from 2010 to 2013. Particularly, the national industrial promotion programme assisted the province to carry out three projects to plan the construction of three industrial complexes; the local industrial extension programme supported the implementation of 76 projects with VND3.6 billion; and beneficiaries contributed over VND12.8 billion. The department also led local industrialists to Binh Duong province to learn about woodworking. In addition, it also assisted one Pia cake manufacturer to replace ovens with toasters and assessed cleaner production at 10 industrial manufacturing facilities.
The objective of Soc Trang province is to synchronously develop clean industries in various aspects like consumption market, material zone construction, production technological equipment and human resources. What policies and measures has the Department of Industry and Trade taken to realise this objective?
The Department of Industry and Trade will continue to focus on tapping its available advantages like abundant labour resources, land resources, material supplies, especially agricultural and aquatic inputs, for processing industries. It will also step up the construction of industrial infrastructure systems in industrial zones to provide ready spaces and premises for investors. It will focus on developing some sectors and industrial products using local available resources like agricultural and aquatic products. The province will grasp opportunities to exert a strong pull on projects using advanced technologies like engineering, electrical equipment, electronic equipment and supporting industries. The locality will strengthen industrial development cooperation with other Mekong Delta provinces and cities. It will also apply consistent solutions to capital, land, technology, human resources, policies and mechanisms to build up the confidence and composure of investors.
Đăng ký: VietNam News
