Da Nang industry promotion

Targeting rural industry modernization

13:00 | 12/05/2020 Industry

(VEN) - The central coastal city of Da Nang is gradually modernizing its rural industry by encouraging and prioritizing funding to upgrade production facilities.

targeting rural industry modernization
Many businesses invest in modern production lines

For example, seeking to expand production scale and improve product quality, Phat Tien Hung Production and Trading Company Limited in Hoa Vang District has invested nearly VND5.2 billion in a PVC-ASA corrugated sheet production line system. A VND500 million grant from the Da Nang Industry and Trade Promotion Center facilitated the modernization. While not large compared to the total invested capital, the funding reduced the cost burden and encouraged other businesses to invest in modern production lines.

The center has also provided equipment and machinery for the Long Buu fine art stone manufacturing facility in Ngu Hanh Son District, one of the famous stone sculpture establishments in Non Nuoc fine art village. According to the beneficiary's representative, production tools used in craft villages as well as the Long Buu facility are rudimentary, leading to low labor productivity. This support not only helped improve product quality and create designs that are more intricate, it also provided motivation for other firms in the craft village to invest in modernizing production.

Projects eligible for industry promotion funds are selected according to criteria of feasibility and impact on society and the environment. Other funded projects including investment in installing multi-blade circular saw machines at Vietstart Production and Trading Company Limited, cold press machines in Dana Plywood Production and Trading Company Limited, five-axis CNC machines in Binh An facility and PVC coating machines in Binh Minh plastic production and trading establishment.

In order to promote the funding’s positive impact on rural industrial production, the Da Nang Department of Industry and Trade continues to build local industry promotion programs in 2020 mainly targeting technological innovation in production. The city’s industry promotion program will prioritize support facilities applying advanced technology in industrial production and cottage industry production at a maximum rate of 50 percent of the total investment capital for equipment but not exceeding VND150 million per establishment. It will also develop technical demonstration models in order to disseminate new technologies and produce new products, providing up to 30 percent of the total capital but not exceeding VND300 million per model.

The center plans other support for production and development of markets for rural industries, such as supporting part of stall rental costs, transportation expenses for establishments participating in fairs and exhibitions in Da Nang City and other provinces. In addition, the center provides support to assess cleaner production, fuel consumption and energy efficiency, funding a maximum of 50 percent of the total consulting cost but not exceeding VND50 millon per establishment.

In 2019, the Da Nang Industry and Trade Promotion Center implemented 19 projects with a total investment of VND2.85 billion, attracting significant reciprocal capital from rural industrial production facilities.

Hai Linh