Binh Dinh Province plans to boost industry promotion funding

13:00 | 12/06/2020 Industry

(VEN)- Based on seed capital of more than VND27.85 billion invested seven years ago, Binh Dinh Province has mobilized nearly VND106.11 billion of reciprocal capital for industry promotion from program beneficiaries. 

binh dinh province plans to boost industry promotion funding
Production capacity of Tri Luc business households has increased significantly since receiving machinery investment

Much of the matching capital from manufacturers is meant for the construction of technical performance models and the transfer and application of advanced machinery and equipment. According to the Binh Dinh Department of Industry and Trade, over the past seven years, Binh Dinh Industry Promotion has implemented 122 such projects with financial support of more than VND14.13 billion, accounting for 50.7 percent of the total funding for the whole period. The projects have been implemented in association with the needs of enterprises and the production of new products, yielding practical results.

A project on supporting the application of advanced machinery and equipment in the production of wooden furniture in the Tri Luc business household in Tuy Phuoc District is a typical example. With a capacity of 20cu.m per minute, the new equipment including four-sided planers and five-axis cutters increases productivity compared to manual production and makes use of wood resources from planted forests. The improved products can better meet consumer demand and yield high economic value.

A project on building technical demonstration model for production of lightweight autoclaved aerate concrete bricks (AAC) in the Binh Dinh Tunnel Brick Joint Stock Company, Tuy Phuoc District is the first AAC brick production line in the central region of the Central Highlands with the advantages of large size, light weight, good thermal and sound insulation and high durability products. This line has been operating stably, bringing about VND65 billion in annual revenue and creating jobs for 42 local workers with a monthly income of VND5-6 million.

According to the evaluation of the Binh Dinh Department of Industry and Trade, the south central coastal province’s industry promotion capital has been effectively invested in the past, helping businesses create new products, gradually improve management capacity, expand production and business, and increase competitiveness.

However, only few rural industrial establishments are qualified to implement industry promotion schemes. Lacking capital, many establishments are not brave enough to invest in factories, equip machines and expand production.

Moreover, the funding is mainly from the state budget and has not been able to mobilize the financial resources of organizations involved in industry promotion activities, so the support level has not met the actual needs. The content of implementation is diversified, so the support funding is not concentrated and the support level is low; therefore, it has not attracted the participation from enterprises and beneficiaries. Specially, the projects are small and discrete, do not create diffuse effects and have a strong impact on enterprises.

To attract industry promotion capital to supplement the annual allocated budget, the department will combine industry promotion with national target projects. It has also proposed to the provincial People’s Committee an increase of 20-25 percent for industry promotion funding from the local budget in the 2021-2025 period and the following years.

Based on these results, the provincial department is planning additional support for the construction of technical demonstration models, technology transfer and application of advanced machines in production.

Bui Viet