Khanh Hoa Province seeks more government funds for rural production

13:00 | 18/08/2020 Industry

(VEN) - Khanh Hoa Province is seeking greater support from the Ministry of Industry and Trade and the Ministry of Finance for investment in technology demonstration models, advanced machine application in production, and infrastructure investment in industrial clusters in order to modernize rural industrial enterprises.

khanh hoa province seeks more government funds for rural production
Industry promotion helps enterprises improve production capacity

Supporting production facilities

In 2019, the south-central coastal province invested nearly VND1 billion in support for 10 rural industrial enterprises, helping them build technical demonstration models, apply advanced machines and equipment, and absorb technology transfers. These firms appropriately invested in new production equipment, yielding high production and business efficiency. Among the beneficiaries of the industry promotion funding were Hung Phat Khanh Vinh Private Enterprise, which received VND75 million, Thao Vy Anh Company Limited - VND90 million, Huynh Quoc Toan adobe brick production facility - VND90 million and Vinh Thach cement tile production facility - VND110 million.

Support for improved production capacity has been a priority of Khanh Hoa industry promotion for many years. According to the data from the provincial Department of Industry and Trade, over the past six years, the locality has spent VND8.67 billion out of a total of over VND11.7 billion for industry promotion funding to boost production capacity. In all, the national industry promotion budget has allocated over VND3 billion for nine projects, while the local industry promotion budget spent over VND5.6 billion on 52 projects.

According to the Department of Industry and Trade’s assessment, the support has helped rural industrial production enterprises and facilities reduce production costs and access new technologies, thereby stabilizing production and business. In addition, industry promotion has positive social effects such as poverty reduction, creating stable jobs for rural workers and contributing to the implementation of new rural criteria.

Proactive approach to policy

From 2021 to 2025, in the context of free trade agreements (FTAs) not only affecting exports but also influencing the domestic market, the Khanh Hoa Department of Industry and Trade has expanded its industry promotion plans. Specifically, it plans to focus on supporting the application of cleaner production in order to improve the efficiency of natural resources and raw material use, reduce emissions and limit the increase of environmental pollution to ensure sustainable development. The industry promotion will also give priority to the investment and improvement of production capacity. Accordingly, Khanh Hoa will support 10 new technical demonstration models, 50 advanced technology transfer models; and five models of improving and upgrading the environmental treatment system at rural industrial establishments and industrial clusters.

In addition, rural enterprises should be more proactive in accessing industry promotion policies, boldly innovate mindsets and update information on production technologies and markets in order to improve their competitiveness in the market.

Khanh Hoa Province allocated a total budget of VND50.22 billion for industry promotion from 2014 to 2020. The province provided VND11.7 billion, and the rest was reciprocal capital of enterprises.

Hai Linh