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Overview of Ba Ria – Vung Tau industrial development

Vietnam’s economy over the period between 1993 and 2018 has witnessed robust growth. This is the period marking the turning point for Vietnam to escape the stagnation and degradation, marking the important development of the new period: the period of accelerating industrialization, modernization and industrial revolution. 4.0.

Ba Ria - Vung Tau is considered as the center of Vietnam Oil and Gas industry with about 95% of total oil reserves and more than 16% of the total natural gas reserves of the country, where many drilling units are concentrated. With the growth of the oil and gas industry, in recent years, the construction of new oil and gas drilling rigs has developed strongly in Ba Ria - Vung Tau, contributing to raising the position of Vietnam as one of the three countries in Asia and one of the ten countries in the world to manufacture oil rigs meeting international standards. Ba Ria - Vung Tau also provides about 13% of the country's electricity output, attracting industries such as oil refining, gas processing, steel production, chemicals, fertilizer, building materials. 

Phu My Fertilizer Factory (Source: The Internet)

In addition, Ba Ria - Vung Tau has comparative advantages in deep water port. Cai Mep - Thi Vai River system is a system of rivers with many advantages for large vessels to anchor and cargo so it has attracted many investors are the ship owners, the large marine corporations on the world Mearsk (Denmark), PSA (Singapore), SSA (United States), Mol (Japan), Hutchison (Hong Kong) ... There are 47 ports in operation, with total 137.4 million tons / year. Especially, it has received ships of up to 194,000 DWT directly from Europe and America.

In the period of 1993 - 2005: This marked the important development step, accelerating the industrialization and modernization in the province. The value of industrial production in the province during this period has increased, but not significantly. In the period of 2006 - 2010: The rate of industrial production value (excluding crude oil and gas) of Ba Ria - Vung Tau province reached 18.19% / year. This is a period of strong development of manufacturing, mining and petroleum industries.

In the 2011-2015 period: due to the impact of falling oil prices, the speed of development of the oil and gas industry will decrease, thus affecting the overall development rate of the province's industry. The production value in this period increased by an average of 7.48% per year. The internal structure of the industry is shifted towards gradually increasing the proportion of the processing industry, reducing the proportion of the mining industry. The proportion of the processing industry will increase from 41.15% in 2010 to 52.01% in 2015; The proportion of the mining industry decreased from 49.64% in 2010 to 40.87% in 2015. In the processing industry, metallurgical industry and mechanical industry, 02 industries always occupy a high proportion in The province's industrial production value (20.29%). In this period, the world and domestic economy faced with many difficulties, economic recession and rising material market, which strongly affected the situation of attracting investment and industrial development in the province. .

From 2016 up to now, the industry has started to stabilize and develop in the processing industry, high tech industry, raising the localization rate; environmentally friendly technology, low energy consumption, not labor intensive, step by step joining the global value chain. Up to the first 6 months of 2018, industrial production value (excluding crude oil and gas) is estimated at VND 122,966.19 billion (accounting for 53.65% of total provincial production value), reaching 53, 3% of the annual plan, up 8.17% over the same period (Plan 8.56%) To achieve the above results thanks to enterprises have made efforts in production, business, investment equipment They are also equipped with modern technology to produce quality products to meet the market demand. In addition, businesses also research, learn and apply the development of science and technology to contribute to the increase of production. export.

Research and application of science and technology in the province's industry and trade

From 1993 up to now, with the development of science and technology, enterprises have applied the construction of workshops from traditional steel buildings to pre-engineered steel buildings with short construction time, charge for business. On the other hand, pre-engineered steel buildings are covered with insulating materials, topped with interlaced roofing sheets, creating a cool, bright space for workers during their work. Workers working in cool working environment, full of light work productivity will be more effective contributing to increased production. On the other hand, the light and airy workshop helps the company to save costs in arranging and installing cooling and lighting systems, thereby reducing costs to create competition for businesses. the market.

Together with the application of science and technology to laborers, enterprises have invested in more modern machinery and equipment to increase production and create products of high quality. PVD has invested in high-tech and modern equipment such as CNC Milling Machine, Milling Machine, Milling Machine, Magnetic drilling machine, Duct and Tube welding machine, Automatic welding machine, High pressure washer system ... to create threaded pipe fitting products. Ship repair, boat with high precision. Tung Ho Vietnam Steel Co., Ltd. has used the direct rolling method. This is a completely new method used to minimize environmental pollution, significantly reducing the amount of fuel and electricity consumption. The company also uses electric furnace steel technology to recycle and reuse resources, less use of iron ore and coal than blast furnaces and ovens. In addition, steelmaking by electric furnace technology also reduces the amount of CO2 produced by 75%, combining the planting of various green plants in plant areas to "green" the environment, clean air, steam Consume carbon dioxide and achieve carbon reduction targets.

Scientific applications not only take place in large enterprises, FDI enterprises in IPs and ICs, but also in small and medium enterprises. Provincial People's Committee also issued Decision No. 31/2014 / QD-UBND dated July 10, 2014 promulgating the program on science and technology to support enterprises to improve the productivity and quality of products and goods of Ba Ria-Vung Tau in the period of 2014-2020. The decision aims to supporting enterprises in the province to renew technologies and equipment to encourage enterprises to research and transfer new technologies with the maximum support level of 500 VND million / project (in the case of self-study), VND 300 million / project (in case of technology transfer). Through the program, small and medium enterprises in the province in general and industry in particular can renew technology and apply new technology to production and business. Some enterprises have upgraded and renovated their equipment lines such as investing in new machines and converting them from using coal to gas.

In order for small and medium enterprises to have access to advanced scientific and technological applications in production, the Industrial Promotion and Industrial Development Consultancy Center also offer national industrial promotion programs and local industrial promotion programs. To support rural industrial enterprises in renovating machinery and equipment with a maximum support level of VND 300 million / 01 national industrial promotion project and a maximum of VND 200 million / 01 local industrial promotion project. It is expected that 2018 will support 01 national industrial promotion project and 15 local industrial promotion projects. 

Inspectation the local industrial promotion project in Nam Cuong Doan Ket Company limited.

At present, to meet market demand, minimize production time, improve the quality of products; The application of science and technology to enterprises in the province is the trend and orientation in the future. Application, equipment innovation helps companies catch up, compete with other products on the market such as planing, polishing, punching for the production of wood products; Cutting, angular, grinding, milling, powder coating line for aluminum production ...).

However, success is always accompanied by failure. In addition to a number of enterprises innovating machinery and equipment, successfully applying science and technology into production and business, a number of enterprises have applied and renovated their equipment to create new products to meet the demand. However, the quality of products is not satisfactory, the investment cost is high, the products can not be sold to the market, thus some enterprises can not maintain their production or production activities in moderation or dissolution. Therefore, enterprises before the renovation of equipment, technology applications need to study, learn thoroughly before going into implementation. 

Rolled steel strip in Tung Ho VN Steel Company

Solutions to technical problems in local enterprises

Implement Decision No. 895 / QD-UBND dated 09/4/2018 of the provincial People's Committee approving the adjustment of industrial development planning of Ba Ria - Vung Tau province by 2025, with vision to 2035. The objective is to achieve the value of industrial production excluding oil and gas in the period of 2016-2020 at 8.86% per year. In the period of 2021-2025 the growth rate of industrial production value increased by 11% / year. In the period from 2026 to 2035, the growth rate of industrial production value will be around 10-12% / year.

The Department of Industry and Trade has propose solutions to technical problems. Some inititives are put forward:

-         To Implement and complete the program of science and technology to support enterprises to improve the productivity and quality of products and goods in the province of Ba Ria-Vung Tau period 2014-2020.

-         Priority will be given to supporting SIs, in supporting capital for technological innovation.

-         To continue the policy of encouraging enterprises to develop and apply international standard management system: ISO, HACP, TQM, BVQI, social responsibility standards SA 8000 ..., trademarks, product labels and industrial property rights for integration development.

-          To carry out technology assessment plans for key industrial production branches in the locality.

-         To set up a database of information on technology to support and provide information and consult enterprises in searching for technology markets and selecting suitable technologies for enterprises to make investment decisions.

-         To encourage foreign-invested enterprises to transfer advanced technologies and source technologies through the development of research activities as well as the development of the supply chain system in Vietnam.

-         To prioritize investment projects using hi-tech and environmentally friendly clean technologies.

-         To formulate a special mechanism to attract investors, take advantage of the transfer channels, cooperate with science and technology, especially foreign direct investment (FDI) to study and apply science and technology.

-         Branding and developing high-tech products.

-         To form a number of branches, products and high-tech enterprises.

-         Encourage the development of technology services, build technology markets, periodically open technology fairs and equipment.

-         To form technology transaction centers, technology trading floors and intermediate organizations of the local science and technology market.