The socio-economic report of Ha Tinh province reveals a mixed bag of fortunes for its industrial sector in the first nine months of 2024. On the one hand, the province’s beer industry thrived, with canned beer expanding its market reach and increasing production. Wood shavings and chips exports also surged, and the garment industry showed positive signs.
However, challenges persisted. The new pack-pin products heavily relied on the market, and the Formosa steel plant underwent a 15-day overhaul in April, causing a dip in steel production due to competition from imported steel. Additionally, Unit 2 of the Vung Ang 1 Thermal Power Plant underwent a 65-day maintenance period starting August 15, 2024, creating a significant hurdle to meeting annual growth targets.
Estimates for September 2024 indicate a 1.73% increase in the province’s overall industrial production index compared to the previous month, but a 0.62% decrease compared to the same period last year. Cumulatively, for the first nine months of 2024, the index is estimated to have decreased by 0.56% year-on-year.
A breakdown of the index reveals the following: mining industry increased by 31.75%, contributing 0.39 points to the overall growth; manufacturing industry decreased by 4.91%, resulting in a reduction of 3.27 points; electricity production and distribution rose by 20.60%, adding 2.71 points; and water supply, waste and wastewater treatment sector increased by 13.94%, contributing 0.32 points to the overall industrial growth in Ha Tinh province.
The overall decline in the industrial production index for the first nine months of 2024 can be attributed to the challenges faced by the manufacturing industry, particularly metal production. In addition to unfavorable market conditions, steel output was impacted by the temporary suspension of the hot-rolled steel line at Formosa from April 1-14, resulting in lower-than-expected growth in both the manufacturing industry and the overall industrial sector.
The electricity production and distribution sector also witnessed a significant decline due to the temporary shutdown of Unit 2 of the thermal power plant in August and September for maintenance.
On a brighter note, the province’s trade and service activities in the first nine months of 2024 painted a positive picture, with total retail and consumer service revenue estimated at over VND 61,000 billion, reflecting a 17.56% year-on-year increase.
A closer look at the figures reveals that the total retail goods sales in Ha Tinh province reached an estimated VND 51,565 billion in the first nine months of 2024, marking an 18.95% increase compared to the same period last year. Revenue from accommodation, catering, and tourism activities is estimated at over VND 6,335 billion, representing a 12.33% year-on-year increase.
Revenue from other services is estimated at over VND 3,418 billion, a 7.82% increase compared to the previous year. Out of the six groups of service items, only the real estate group showed negative growth, while the other five groups posted positive growth. Transport and warehouse service revenue is estimated at over VND 6,435 billion, a substantial increase of 21.45% year-on-year.
Ha Tinh province’s total budget revenue for the first nine months of 2024 exceeded the same period last year. Specifically, as of September 20, 2024, the province’s state budget revenue reached over VND 13,656 billion, reflecting a 4.89% increase year-on-year.
Domestic revenue accounted for VND 6,920 billion (50.68% of the total revenue) and witnessed a 6.08% increase compared to the previous year. Notably, certain tax categories experienced significant growth, including real estate-related revenues, which reached VND 2,186.64 billion, a 50.38% increase, and revenues from the non-state business sector, which amounted to VND 1,128.28 billion, a 34.25% increase.
However, revenue from foreign-invested enterprises plummeted by 63.02% year-on-year, reaching only VND 760 billion in the first nine months of 2024. In addition to domestic revenue, revenue from import-export activities reached over VND 6,262 billion, a slight decrease of 1.87% compared to the same period last year.
This decrease is mainly attributed to the challenges faced by the Hung Nghiep Formosa Ha Tinh Steel Company in the early months of the year, which impacted the province’s budget revenue. Total state budget expenditure as of September 20, 2024, reached over VND 17,634 billion, a 4.49% increase compared to the same period last year.
In the first nine months of 2024, the province’s export value was estimated at 1,714.45 million USD, reflecting an 18.38% decrease compared to the same period last year (a reduction of 385.93 million USD). This decline is mainly attributed to the global economic challenges posed by inflation and rising interest rates, which dampened the demand for steel products worldwide. Consequently, Formosa Ha Tinh faced difficulties in exporting steel and steel billets.
Additionally, the export value of yarn, textiles, and garments decreased by 34.87% compared to the previous year. Despite increases in the export value of tea, textiles, and garments, these commodities account for only 1.53% of the province’s total export value, hence having a minimal impact on the overall export results for the first nine months of 2024.
In the first nine months of 2024, the province’s import value was estimated at 2,879.37 million USD, equivalent to 77.82% of the yearly plan and reflecting a 4.57% increase compared to the same period last year. Of this, the import value of Formosa Ha Tinh was estimated at 2,123.09 million USD (accounting for 73.73% of the province’s total import value) and witnessed a 4.97% increase.
In the upcoming fourth quarter and final months of the year, it is anticipated that production for year-end orders will increase, leading to a rise in demand for raw materials. Additionally, the demand for foreign goods is expected to continue to grow, resulting in a significant surge in import value.
Regarding business development in the province, from the beginning of the year to September 30, 2024, Ha Tinh welcomed 1,038 newly established enterprises, an 11.25% increase, with a registered capital of over VND 5,341.2 billion, a substantial 41.18% increase compared to the same period last year.
However, 538 businesses registered for temporary suspension of operations, an 11.85% increase compared to the previous year, and 173 enterprises completed dissolution procedures, a significant 613% increase year-on-year. These figures indicate that businesses continue to face challenges, particularly regarding access to capital, which has impacted their operations and, by extension, the overall economic development of the province.
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