Endeavor to Address Difficulties and Maintain Growth Momentum

The world and the region have experienced complicated developments, especially the fast-spreading and prolonged Covid-19 pandemic that has caused heavy impacts on the economy. In that context, resolved to realize the dual goal of "fighting against the epidemic and focusing on economic development", the industry and trade sector of Lao Cai province has managed to maintain its development momentum with important outcomes.

According to data released by the Lao Cai Department of Industry and Trade, the province’s industrial production valued VND18,764.2 billion in the first six months of 2021, equaling 46.4% of the assigned plan and 43.4% of the self-revised plan. Of the sum, the mining industry generated VND1,400.4 billion, up 3.2% year on year; the processing and manufacturing industry made VND14,446.4 billion, up 15%; and the electricity and water industry reached VND2,917.4 billion VND, up 2.9%. The value of handicraft production amounted to VND1,765 billion in the six-month period ending June, reaching 53.3% of the plan and rising 21.4% from a year earlier.

Notably, due to difficulties caused by the Covid-19 epidemic, the mining output of ores (except for iron ores) increased over the same period of 2020. Selling prices of copper, steel and fertilizer products stayed high while some new products were created like red phosphorus, textile and garment. No epidemic contagions were recorded in manufacturing facilities. At the same time, with six hydroelectric plants in operation, commercial electricity output increased from a year ago and ensured safe and uninterrupted power supply for production and daily life, thus actively contributing to the overall industrial growth.

Trade and service expanded, with total retail revenue of consumer goods and services rising 41.2% year on year to VND13,344.2 billion in the first six months of 2021, equal to 46.3% of the full-year plan. The province's import and export sector boosted official cross-border trade to reduce risks, still took a trade surplus of regular products and attracted more exporters of agricultural products (mango, dragon fruit, banana and watermelon), traditional strengths of Vietnam. Merchandise export value reached US$2,079.2 million in the first six months of 2021, meeting 45.2% of the yearly plan and rising by 41.9% over the same period of 2020.

From now until the end of the year, to fulfill the assigned target, the industry and trade sector of Lao Cai province will keep a close watch on market developments to react promptly. At the same time, the sector will actively grasp the operational situations of local enterprises to introduce workable solutions or propose relevant bodies to deal with difficulties faced by enterprises.

In addition, the sector will focus on speeding up the progress of ongoing industrial projects, resolutely withdrawing slow-moving projects to give the investment opportunity for better investors. It will encourage and facilitate projects to make new products such as high-quality DAP, red phosphorus, chemicals (Duc Giang Chemicals Group), packaging and bronze cables to create new high added value.

At the same time, the sector will coordinate with Chinese agencies to immediately implement solutions (allowing the transportation of machinery, equipment and fuels to construction sites, with strict epidemic supervision imposed on drivers) to import such things via Lao Cai International Border Gate to ensure project progress and time and reduce its costs.

Moreover, it will put forth solutions allowing the entry of experts and technicians for projects in the province. On the other hand, businesses also need to actively have qualified personnel to replace foreign experts. They must apply epidemic control measures to ensure disease safety at factories, enterprises, commercial facilities and border gates to achieve all targets.

Source: Vietnam Business Forum