Focus on Development of Agro-Fishery Processing Industry

The processing industry has played a leading role in the economic development of Kien Giang province, especially agro-fishery processing industry fishery, contributing greatly to the total volume and value of the industry and socio-economic development of the province.

Kien Giang is one of localities having big advantages in processing and exporting seafood and rice with more than 853 rice mills – rice polishing machines with capacity of 3.5 million tons/year, guaranteeing the demand for milling, rice polishing in and outside the province. In the province, there are 449 seafood processing facilities with the design capacity of 227,048 tons/year with products of high economic value such as lobster, frozen squid, canned tuna, fish sauce and fish powder; contributing to improving the competitive advantage of the industry compared to other local provinces in Mekong Delta and the whole country. In 2014, the production value of agricultural and fishery products processing industry reached VND 6,338 billion (up 30.96 percent compared to 2010), representing 19.4 percent of the entire industry; Average growth rate in 2010-2014 was 6.98 percent/year. In 2014, rice processing production was 2.7 million tons (up 39.68 percent compared with 2010), rice exports reached 621,000 tons, seafood processing production reached 152,710 tons (up 54.4 percent compared to 2010) and seafood exports reached 29,419 tons.

In the orientation of developing priority industries, and key industries of Kien Giang by 2020, the province will give priority to developing the processing industry group, especially agro-seafood processing with key products including rice and seafood exports; aims to create jobs and increase income for rural workers, promote local economic development in the integration period. To improve the competitiveness and production value of agro-processing industry, the province issued a program of 384/CTr-Committee dated August 22nd 2012, which put forward a list of key investment projects that are encouraged and received incentives to 2020. The province is also interested in supporting and creating favourable conditions for businesses to change technology and production processes, innovate investment machinery and diversify products.

In addition to the application of the mechanism and supporting policy under the current provisions of the centre, Kien Giang also issued a number of policies to support investment in the renewal and upgrading of machinery equipment and technology for agro-fishery manufacturing sector. Specifically, with the aim to implementing Decree 45 of the Government, the PPC has issued Decision 16/2015/QD-Committee dated June 3rd 2015 to support building technical demonstration models to disseminate new technologies and new products with the amount of VND 500 million/model; support application to transfer advanced technology into production with the amount of VND 200 million/facility; thereby helping businesses reduce investment costs, reduce prices and improve the competitiveness of products on the market.

Earlier on March 11th 2014, PPC also issued Decision 16/2014/QD-Committee on policy to support development of agro-fishery processing and export in Kien Giang province until 2020 in order to encourage and attract investment to develop this key industry. Director of Kien Giang Department of Industry and Commerce, Mr Huynh Van Ganh, said the Department disseminated the contents of investment incentives policy to other related sectors, the people’s committees of towns, cities and enterprises in the province and simultaneously published the policy on the website of the Department and the relevant units. Thus, the province has attracted many companies in and outside the province to register to support 9 projects with a total investment of over VND 574 billion. Until now, the Department of Industry and Trade has evaluated 2 investment projects that apply for support under the policy include: seafood processing and refinery plant of Trung Son Seafood Corporation with investment capital of VND 284.5 billion (in which VND 50 billion loan applying for interest subsidy); and surimi processing plant of OAKI Seafood Co. with investment capital of VND 166.93 billion (in which VND 50 billion loan applying for interest subsidy). The projects contribute to the province’s exports about VND 23 million/year; contributing to provincial budget VND 820 million and providing jobs for 700 workers on site.

However, as noted by Mr Ganh, currently, supporting policy under Decision 16 has not attracted many companies (only support for two projects in the field of aquatic product processing for export). Partly due to reduced purchasing power in the market and large inventories, companies have not invested in new, expanded investment projects; the rest due to weak efforts in advertising and disseminating the business support policies of the province. To overcome these shortcomings and to continue supporting the processing industry to develop effective with the orientation from now to 2020, Kien Giang Province will focus on development of agro-fishery processing industry under Program 384/CTr -UBND of PPC; while continuing to promote implementation of supporting policies under Decision 16/2014/QD-Committee and a number of supporting policies under the provincial industrial promotion program period 2016-2020.

Source: Vietnam Breaking News. Date: January 12, 2016