The northern mountainous province of Vinh Phuc is implementing several policies to support industrial and handicraft establishments in rural areas, with the goal of shifting the economic structural in rural areas.
The provincial administration had approved an industrial extension programme for 2016-2020 with total budget of more than 34 billion VND (1.47 million USD at current exchange rate), which was designed to mobilise investment from all sectors in industrial and handicraft production. The programme also included measures to encourage enterprises and production households to adopt environmentally-friendly production technology and use natural resources economically.
From 2016 to 2018, Vinh Phuc carried out support projects targeting 78 industrial establishments at a total cost of 7.6 billion VND. As a result, beneficiary enterprises were able to reduce production costs, enhance their competitiveness and gradually establish their footholds in the market. Meanwhile, production households gained access to advanced technologies and new production methods.
With advice and support from the provincial industrial extension and development consultancy centre, the Tam Dao honey bee joint stock company in Binh Xuyen district invested more than 2.7 billion VND in new machinery for honey processing, turning out quality honey products with higher value, meeting consumers’ demand with hope for export.
The company at present produces hundreds of honey each year in various forms. Besides the traditional product of bottled honey, the company also offers royal jelly, bee pollen, special forest bee honey, Tam Dao mountain bee honey, or honey mixed with fruits. The company’s products have become a specialty of Vinh Phuc, and are available in many supermarkets, tourism sites and conferences.
Households engaged in fine art and handicraft production in Yen Lac town (Yen Lac district) have also benefited from such support programmes. Dozens of households in the town received financial assistance to buy machines. Ngo Van Tu said he got a preferential loan of 100 million VND to buy a perforating machine worth more than 200 million VND. According to Tu, the machine helps his family improve the quality of their products.
Pham Thi T, owner of a furniture making facility in Tien village, Yen Lac town, said while it is difficult for a production household to buy synchronous machinery and equipment, this is a must-do task, because it will bring great benefits, such as reducing labour costs, enhancing productivity and product quality, saving materials and limiting pollution.
Other beneficiaries of the industrial extension centre’s support projects were the Hoang Ha consultancy and construction joint stock company in Binh Xuyen district, the Khanh Ha trade limited liability company in Vinh Tuong district, the Nguyen Phuc one-member limited liability company in Song Lo district, to mention just a few. Most beneficiary enterprises reported higher productivity, better product quality, less use of labour, and less environmental pollution.
Besides, Vinh Phuc authorities have also held vocational training for thousands of labourers in rural areas, with focus on such occupations as sewing, embroidering, crochet, bead sewing, weaving, and carpentry.
The province has been building pilot production models using clean technology, and assisting industrial production establishments in rural areas in participating in industrial and trade fairs and exhibitions not only in the country but also abroad.
Director of the provincial industrial extension centre Nguyen Xuan Binh said the source of capital from the centre has partly helped ease capital shortage of local production facilities and stimulated investment from enterprises, cooperatives and business households.
In the time ahead, Vinh Phuc will give priority to developing industries that the province has advantages in, with the aim of increasing the proportion of industry and handicraft in the rural economic structure. It is noteworthy that the province has already fulfilled the criterion on electricity supply in building new-style rural areas, laying the foundation for industrialization./.