Kien Giang industry promotion attracts reciprocal capital

12:36 | 28/07/2019 Local Industry

(VEN) - Industrial promotion projects and programs in the Mekong Delta’s Kien Giang Province are proving effective and attracting the participation of industrial enterprises.

kien giang industry promotion attracts reciprocal capital
Applying sculpture machine CNC 4D at Nguyen Tuan Khoanh’s industrial facility

In the 2014-2018 period, the Kien Giang Industry Promotion and Development Consultancy Center implemented 68 industrial promotion projects with a total budget of almost VND7.97 billion, including 26 projects on developing technical performance models and technology transfer. Implementation of these programs has proven effective, helping industrial enterprises gain access to advanced machinery, improve product quality, reduce production costs and environmental pollution.

For example, the center helped an industrial facility in Nguyen Thanh Hung (in Thanh Dong A commune, Tan Hiep District) in buying a multifunctional lathe T2400A1+ and electric transformer for manufacturing machines in rice farming. This industrial establishment used industry promotion funding to apply modern equipment in production, which helped improve output and raised laborer’s income.

The center also spent VND207 million to finance a handicraft production project in Nguyen Tuan Khoanh’s industrial facility using a CNC 4D sculpture machine. The new machine has helped create uniform products, increase production output, reduce product prices and meet market demand. Workers’ incomes, thus, also increased from VND4 million to VND6 million a month.

Data from the Kien Giang Department of Industry and Trade showed that the total capital for implementing industrial promotion programs in the 2014-2018 period topped almost VND21.52 billion, with reciprocal capital of nearly VND1355 billion.

However, like many other localities in the region, most rural industrial establishments in Kien Giang Province are small businesses that lack financial resources and long-term production plans, and are therefore vulnerable to fluctuations in doing business. Many industrial establishments want to acquire machines and equipment but they find it hard to access industry promotion funding without matching capital.

On the other hand, it often takes more than six months for industrial establishments to receive funding after starting industry promotion projects. The lack of capital and changes in technologies usually result in temporary suspension of their projects. Despite increased industry promotion funding, they are still small compared to the demand of rural industrial establishments, which also affects investment attraction.

In order to overcome these limitations, Kien Giang plans to continue combining industrial promotion with national target programs and a number of other provincial socio-economic development programs to attract capital from individuals and organizations for the local rural industry. The province will also integrate trade promotion with its industry promotion plans to introduce local products and obtain further market access.

As of June 2019, Kien Giang industry promotion had implemented local industry promotion projects with total funding of nearly VND1.38 billion. The province is accelerating the implementation of remaining projects to fulfill this year’s plan.

Hai Linh