Quang Ninh furnishes firms with promotional support

09:27 | 22/08/2017 Local Industry

(VEN) - In recent years, the Quang Ninh Center of Industry Promotion and Industrial Development Consultancy has conducted various projects to support  technological application to production, many of them focused on forest product processing - the province’s strength.

quang ninh furnishes firms with promotional support
Industrial wood production at the Quang Ninh Forest Processing Joint Stock Company

Quang Ninh’s reforestation area has reached 136,262ha with production of two million cubic meters. A small amount of wood from planted trees is used to make furniture to meet domestic and export demand. The rest is sold as raw material, such as wood chips, which does not have high economic value.

Aware of the weaknesses, Quang Ninh has intensified its consulting activity for businesses in this industry to spur their investment in technological application so as to create higher economic valuefor their products.

In 2017, using funds from the national industry promotion budget, the center provided the Quang Ninh Forest Processing Joint Stock Company with VND400 million to equip a high quality plywood production factory. The plant is designed to serve domestic and export demand with 5,000 cubic meters of finished products per year. The budget was used to purchase a wood dryer, a four-faced planer, six woodcutters and belt conveyers from Chinese Taipei or Japan.

According to the assessment report on investment efficiency, in the first year the new machines operated at 80 percent capacity and helped the company achieve sales revenues of VND72.5 billion. Nearly 40 jobs have been created. The investment payback period is assessed at nearly six years.

Before supporting the Quang Ninh Forest Processing Joint Stock Company, the center provided the Trinh Anh Joint Stock Company with VND300 million to execute a project for building a technical performance model of high quality wood-finished steel doors. According to the project report, the company bought a sheet metal fabrication machine, a sheet metal shaping machine and a cold compressor to complete its equipment system. With completion of the project, the company has entered into stable operation producing 25,000 square meters of sheet metal per year. Not only that, but the company’s wood-finished steel doorsare now ranked among the 50 top brand names by the National Office of Intellectual Property of Vietnam.

Due to industry promotion support, some forest processing companies in the province have significantly improved production capability and product quality, capturing a stable market share. Companies that have received support from industry promotion budget are still eligible for additional help if they meet the conditions and present practical projects. This reflectsthe willingness of the provincial industry promotion authorities to support businesses andgain their trust.

From 2012-2016, Quang Ninhpoured more than VND10.5 billion into 119 projects. In addition, enterprises that benefited from the projects investedVND188.3 billion in rural industrial development in the province. In terms of building technical performance models and technological application to production, Quang Ninh has conducted nine projects and supported 91 rural industrial production facilities. In 2017, Quang Ninh continued to achieve significant results in support programs for craft industrial production businesses and facilities in the province with a budget of VND2 billion.

Apart from production support, Quang Ninh has provided consulting services on brand name building and registration, and market development for rural industrial businesses within the province.

Bui Viet