THE RESULTS OF IMPLEMENTATING FIVE-YEAR TASKS OF INDUSTRIAL PROMOTION IN DONG NAI PROVINCE LOCALITIES 2005-2009
I. Tasks of State management on industrial promotion
1. Setting up and promulgating legal documents of industrial promotion in localities
Five years after implementing industrial promotion activities in provincial localities, Dong Nai Department of Industry and Trade submitted programs, projects that were approved by Province People’s Committee as follows: Project of reviving and developing traditional branches and trades of small industry and handicraft, Program of mechanical network development to fix equipments and machines and service agriculture, rural areas 2006-2010.
Project of industrial promotion task in resettlement zones appertaining to Long Thanh district and other localities; program of industrial promotion in the period of 2006-2010; Project of reviving and developing brocade weaving trades in Ta Lai commune, Tan Phu district; iron casting trades in Thanh Phu commune, Vinh Cuu district; trades of producing and processing varied mushrooms in Long Khanh town by 2012; bamboo rattan knitting trades in Dinh Quan 2008-2013; artistic wood trades in Trang Bom 2008-2013;
Setting up regulation of managing and using industrial promotion expense in provincial areas; Rules of examining and granting titles of craftsmen, proficient workers, people with special contribution to bringing new trades into local areas; Rules of selecting through discussion, examining and rewarding typical rural industrial products in Dong Nai province; Founding website of Dong Nai Industry Promotion Center.
In 2010, industrial promotion activities in provincial areas continued to set up the project of developing bamboo trades in Vinh Cuu district and project of developing artistic wood in Xuan loc district.
2. Organization of industrial promotion system in local areas
2.1. Organizational apparatus of Industry Promotion Center
After Decree 134/2004/NĐ-CP dated Sep 6th 2004 of Government, Directive 16/2004/CT-BCN dated Sep 22th 2004 of Industry Ministry promulgated, Dong Nai People’s Committee decided to found Industrial Promotion Center directly under Department of Industry (now is Department of Industry and Trade) according to Decision 5504/QĐ.CT.UBT dated Nov 12th 2004. And the center officially came into operation on Jan 02nd 2005.
Organizational structure of Industrial Promotion Center consists of Management Board and 03 specialized divisions. The year of 2005 is the first year of operation with main activities of organization stableness, material facility preparation, and grasping the situation of industry – small industry and handicraft development in locality. Initially, there were only six cadres. So far, the numbers of payrolls that were allotted by provincial authority are 16 people aiming at organizing, deploying and implementing the tasks of rural industry development promotion in locality. Besides, the Center recruited 03 labor contracts to carry out the assigned missions. Total laborers now are 19 people. Up to 2010, after rearrangement of organizational structure in accordance with Circular 18/2008/TT-BCT dated Dec 19th 2008, Dong Nai Center of Industrial Promotion consisted of Management Board and 04 specialized divisions. As far as qualification is concerned, 01 person was graduated from postgraduate, universities: 09 people, college: 01 person, high school: 04 people, the rest: 03 people
2.2. The system of industrial promotion officials and communal-level collaborators
Dong Nai Department of Industry and Trade directed and assigned Industry Promotion Center to focally manage and organize industrial promotion activities on the basis of coordinating with bureau of economy/bureau of economy and infrastructure in provincial localities. At present, there are cadres concurrently holding industrial promotion activities in communes, townlets.
2.3. Activities of coordination and deployment
On the basis of ministerial-level coordinative program, Dong Nai Department of Industry and Trade concluded programs of coordination with provincial branches, including Dong Nai Cooperative Alliance, HCM Communist Youth Union of Dong Nai, Dong Nai Broadcast and Television Station, and entrusted Center of Industrial Promotion with implementing signed coordinative contents. Besides, in order to deploy and carry out industrial promotion tasks in provincial localities, Dong Nai branch of Industry and Trade actively coordinated with South Branch of Vietnam Chamber of Industry and Commerce, Dong Nai Farmers’ Union, Bureaus of Economy/Industry and Trade, Vocational Training Center in districts, Long Khanh town, Bien Hoa city.
3. Other activities of State management
To coordinate with provincial departments and branches to carry out Resolution 30/2008/NQ-CP dated Dec 11st 2008 of Government and Plan 257/KH-SCT of Dong Nai Industry and Trade Department in order to contribute to prevent economic declination, maintain economic growth in the sector of rural industry.
To coordinate with localities and enterprises, rural industrial production establishments to deploy Resolution 26-NQ/TW of The tenth Central Committee of Communist Party and Plan 97-KH/TU dated Dec 29th 2008 of Provincial Committee of the Party on “agriculture, rural areas, farmers” in the year of 2009.
4. Assessment of Industry and Trade Ministry’s , local authorities’ tasks of administration and State management.
In the past time, as for tasks of administration and management, Ministry of Industry and Trade, Dong Nai Province People’s Committee extremely cared, encouraged to support and make favorable conditions for organizations, individuals in provincial localities to invest in production, development of rural industry through concretized mechanisms, policies. For this reason, in the past five years, the number of industrial production enterprises in Dong Nai, especially in sector of rural industry, incessantly grew in quantity and quality. From that point, tasks of industrial promotion also became more advantageous in the process of implementing and deploying annual plans.
II. THE RESULTS OF IMPLEMENTING INDUSTRIAL PROMOTION ACTIVITIES
1. The results of implementing industrial promotion tasks according to Decree 134/2004/NĐ-CP dated June 9th 2004 and Decision 136/2007/QĐ-TTg dated August 20th 2007.
1.1. Support of training
To organize training for laborers of trades: bamboo rattan, artistic wood, artistic pottery, mechanics, textile and garment, brocade weaving… in the districts, city such as Dinh Quan, Xuan Loc, Tan Phu, Bien Hoa, Trang Bom, Vinh Cuu, Cam My, Long Thanh, Thong Nhat to supplement skilled human resource for establishments, enterprises of small industry and handicraft traditional branches and trades. Total trained laborers in 2005-2009 were 3,007 people. Total supporting expenditure was VND 2,278.1 million, of which local industrial promotion was VND 1,259.7 million, national industrial promotion was VND 1,018.4. In addition, the expenditure that was contributed from rural industrial establishments was VND 2,619.8 million.
To support to organize training for industrial promotion officials of provincial districts: 186 participations with total supporting amount of VND 21,7 million from the expense source of local industrial promotion.
1.2. Exhibition, Fair, product introduction, trade promotion, product broadcasting
Dong Nai sector of industry and trade has organized 02 exhibitions and fairs. First one is exhibition fair of supporting industry and enterprise linking in 2007 with 30 kiosks exhibiting enterprises’ products of mechanics, electricity – electronics, textile, footwear. The latter was Exhibition Fair of Dong Nai craft village - rural industry and trade in 2009 with 158 kiosks in Trang Bom district
To mobilize and support establishments of rural industrial production to take part in exhibitions and fairs organized inside and outside province with total expense of VND 745.74 million from local industrial promotion funding
To introduce, broadcast information, images for over 500 rural industrial production establishments and many products of other handicrafts in Dong Nai. At present, to be continuing to update information from enterprises in provincial and neighboring localities. Besides, to create favorable conditions for 05 enterprises participating in forum of introducing business opportunity to Kansai (Japan) delegation of enterprises. This forum took place in HCM city to assist the enterprises getting opportunities of business partners seeking, investment cooperation, and market expanse.
1.3. Tasks of consultancy, support, management ability enhancement
To consult, support establishments of rural industrial production to be satellite of large-scale production and business enterprises in pre-processing raw material of input, assembling products… To organize workshops on experience of business and production, international economic integration, environment, new technique and technology aiming at experience exchange, popularization, research and applying to establishments of rural industrial production.
To guide, consult district-level bureau of economy/industry and trade about setting up program of craft village development in the period of 2007-2010, surveying, assessing the current situation of industry – small industry and handicraft in provincial localities.
To guide, consult to found the establishments, rural industrial production enterprises, prioritily develop production establishments of small industry and handicraft with development potential according to Project for revivification and development of traditional branches and trades of small industry and handicraft as well as Program of mechanical network development of fixing and servicing rural industry.
To open courses of the start and improve your business and other special subjects pertaining to business management for managerial staffs in establishments of rural industrial production, with 1,093 participants and total supportive expense of VND 729 million.
To consult, guide enterprises to register and participate in Program of provincial mainstay products 2009 and carry out Project of training human resource with total supportive expense of VND 500 million from the fund of industrial promotion.
1.4. Development of rural industrial products
Approved by Dong Nai People’s Committee, sectors of industry and trade annually organize innovative design contest of handicraft in order to encourage the creativity of designers, organizers, individuals, enterprises, rural industrial production establishments in making new products suitable to domestic and oversea customer’s preference, close to modern life while still boldly bearing traditional characteristics of nation that are expressed by craftsmen’s skillful hands.
Aiming to encourage, bring into play the role of craftsmen, proficient workers, people with special contribution to bringing new trades into local areas to set up, revive and develop traditional branches and trades of small industry and handicraft in provincial localities. Dong Nai Branch of Industry and Trade organized to examine and grant titles of craftsmen, proficient workers, and people with special contribution to bringing new trades into local areas. Dong Nai Province People‘s Committee acknowledged the voted result: 01 title of craftsman, 40 titles of proficient workers, 01 title of person with special contribution to bringing new trades into local areas that pertained to branches and trades such as: artistic pottery, fine art wood, bamboo rattan knitting, stone manipulating, copper casting, carpentry.
1.5. Building model of technical performance, technology transfer, application of technical science advance.
To organize workshops to introduce: some technologies of preservation and agricultural product after harvest; line of industrial slaughter; technology of processing cashew wine; technology of processing products made from mangoes; technology of drying peziza; technique of processing alcohol quality… with 914 participations and total supporting expense of VND 77,5 million from local industrial promotion funding.
1.6. Tasks of propaganda
Dong Nai sector of industry and trade necessarily defines to speed up implementation of propaganda task in many different forms such as: to coordinate with Dong Nai broadcasting and television station to carry out special subjects of industrial promotion monthly with higher and higher quality of program. To coordinate with Industry Magazine to implement propaganda program “Dong Nai Industry and Trade – international economic integration” on television station of VTV1 and VTV4; To set up and publish news-bulletin of industrial promotion timely every quarter, innovate more contents and forms with every passing days. To set up website of Dong Nai Industry Promotion Center to introduce and broadcast images, production capabilities of over 500 rural industrial production establishments; update and reflect contents of activities pertaining to industry – small industry and handicraft in provincial localities; guide knowledge of business management, information of science, technique, markets… To publish leaflets, CD presenting branches and trades of small industry and handicraft in Dong Nai, activities of industrial promotion in province. To intensify propaganda tasks of industrial promotion activities by means of industrial magazines, documents concerning districts, Long Khanh town and Bien Hoa city. Local industrial promotion funding to support propaganda tasks within 5 years from 2005 to 2009 was VND 797.64 million.
1.7. Organization of survey, experience learning, business partner search
To organize and support expense for 5 missions of survey, market and business partner study, experience learning of production business development, symbolic and advanced models of production business, fields of small industry and handicraft, traditional craft villages. Total expense which supported Bureau of Economy/Industry and Trade in districts and at rural industrial production establishments in localities of neighboring provinces were VND 100.4 million.
Besides, to organize, welcome and work with teacher mission of SIYB program (China) in order to exchange experience in training SIYB program. To welcome to missions from Departments of Industry and Trade, Industry Promotion Centers in neighboring provinces to exchange experience in industrial promotion tasks and contact with some rural industrial production establishments. By the means of that, to make favorable conditions to help establishments find sources of raw materials for production and product consumption.
2. The results of implementing projects approved by Dong Nai People’s Committee
Dong Nai Department of Industry and Trade set up and submitted projects, programs of speeding up to develop rural industry for Dong Nai People’s Committee‘s approval, especially projects of restoring and developing traditional branches, trades of small industry and handicraft. After approving by Dong Nai People’s Committee, Department of Industry and Trade co-operated with related departments and branches to organize and carry out. The results were obtained as follows:
2.1. Program of developing mechanical repair network servicing agriculture and rural areas in the period of 2006 - 2010
To organize and implement 02 mechanical repair establishments in districts: Tan Phu and Dinh Quan. To co-ordinate Vocational Training Center, Bureau of Industry and Trade in two districts to open mechanic repair training courses of agricultural utensil engines for 268 people. Simultaneously, to organize and survey situation of using agricultural utensil engines and needs of repair in localities to deploy annual plans.
2.2. Projects of industrial promotion in resettlement zones of districts: Long Thanh, Nhon Trach and other localities appertaining to Dong Nai province
To co-ordinate with People’s Committee of Long Thanh district, Nhon Trach district to survey needs of vocational conversion in resettlement zones of district localities. To propagandize, popularize industrial promotion policies in resettlement zones. To guide some contents of start business program for those who resettle, consult occupational conversion, survey needs, discuss solutions to support people in resettlement zones…
Besides, to preside, co-ordinate with Long Thanh district Bureau of Economy, Long Hung commune Farmer Association and Dong Nai province Cooperative Union of Agriculture Services and Synthesis to organize to survey, study experience in producing handicraft and fine art, wine of grapefruits for 40 households pertaining to those who have needs of vocational conversion in resettlement zones.
Through survey, investigation of vocational conversion needs from households in resettlement zones, needs of branches and trades was dispersive with small scale. Branches and trades mainly focused such as: hair curl, small scale trade, cafeteria or other service opening… were cared by people but they didn’t belong to fields of industrial promotion support. At present, most resettlement zones weren’t still filled up. A part of inhabitants lived in resettlement zones but didn’t belong to those who were arranged to resettle. Some households were beneficiaries of resettlement but they still had land for production so their needs of vocational conversion were very limited. One other reality is that people at working ages with qualification from junior high school to more had jobs as workers in industrial zones. The rest of inhabitants mostly are elderly and low educational level, therefore needs of training and vocational conversion also face a lot of difficulties.
2.3. Projects of restoring and developing traditional branches and trades of small industry and handicraft:
The results of implementing projects were obtained as follows:
a. Project of brocade weaving – Ta Lai commune – Tan Phu district
District People’s Committee founded Council of Compensative and Ground Clearance, prepared to deploy and build workshops in quarter of 2010
b. Project of artistic wood – Trang Bom district
At present, the authority of Trang Bom district has united to choose location (more than 02 ha) in Binh Minh commune. Task of survey and specification has been completed. They are selecting agents to reach an agreement in location, set up invested project.
c. Project of bamboo rattan knitting – Dinh Quan district
Dinh Quan district people’s committee united to choose a location of 2.3 ha (stage 1) in Gia Canh commune to carry out project. Dinh Quan district people’s committee directed specialized agents to set up the procedure of location agreement and negotiate to choose an agent to form invested project.
d. Project of iron casting – Vinh Cuu district
The authority of district deployed detailed plan of construction with proportion of 1/500 area and 4.8 ha in Tan An commune. It was submitted to Department of Construction for assessment and approved by Dong Nai province People’s Committee, concurrently carried out to select investor for project establishment.
e. Project of mushroom planting – Long Khanh town
The authority of Long Khanh town chose a location of 30 ha in Suoi Tre commune to deploy this project and has setting up procedure of location agreement to submit for Department of Investment and Planning’s examination.
2.4. The expense of setting up, managing, deploying projects
The expense of setting up, managing, deploying projects of maintaining and developing traditional branches and trades of small industry and handicraft was VND 525 million from local industrial promotion funds, of which expense for setting up projects was VND 521.9 million.
3. Effect on industrial promotion tasks
Tasks of industrial promotion after five years 2005 – 2009 remarkably contributed to develop rural industry in Dong Nai province. Until 2009, the whole province had more than 10.874 rural industrial production establishments that increased 1,214 establishments compared to those in 2005 and solved jobs for 92,680 regular labors and about 44,980 irregular labors. The value of rural industrial production in 2009 reached about VND 9,563 billion, occupying 11.23% of total industrial value in province, increasing 2.3 times compared to that in 2009. Per capita income of laborers is VND 1,200,000 – 1,500,000/person/month
Thanks to industrial promotion activities, many traditional branches and trades in Dong Nai have been gradually recovered and developed such as: bamboo-rattan knitting, brocade weaving, artistic wood, fine art ceramics, copper founding, iron casting… that solved increasingly labors in rural sector.
Activities of industrial promotion in provincial localities after 5 years obtained some determined results, of which some results are bases, cores to carry out tasks of industrial promotion in successive time. Focus activities of industrial promotion in the period of 2005-2009 include: training, consulting, supporting, fair task and exhibition fair participation, product introduction, market searching, technical performance, technology transfer. Total expense of industrial promotion to support rural industrial production establishments in provincial localities 2005-2009 was VND 5,557.8 million (not including regular expense for apparatus operations of Industrial Promotion Center). Besides, rural industrial production establishments self-invested over VND 20 billion for industrial promotion activities.
Activities of industrial promotion were organized under many forms such as: supporting rural industrial production establishments in provincial localities directly or indirectly to develop human resources, enhance management abilities, capacity of equipments and machines, speeding up trade promotion, broadcasting products. To attract and solve jobs for many laborers pertaining to branches and trades such as: garment, handicraft and fine art, wood processing, bamboo-rattan knitting, copper casting, ceramics, agricultural product and food processing. Five years after carrying out, the number of establishments which received policies of industrial promotion remarkably increased in turnover, raise quality and quantity of human resource. Some organs of bamboo-rattan branch had a moderately good growth rate such as: Dinh Quan handicraft and fine art Cooperative, Ho Nai handicraft and fine art Cooperative, Tan Hiep handicraft and fine art Cooperative with average turnover reached VND 6 billion, increasing 3.75 times compared to turnover in 2005.
Tasks of vocational training helped rural industrial production establishments increase 60-80% of stay-in trained labor rate. 100% of laborers after training were handed over to received establishments. Of 3,007 laborers were trained vocations from the funding of industrial promotion, there were 1,954 people working at rural industrial production establishments. The rest of people carried out to do outwork at home (mainly in branch of bamboo-rattan knitting).
Activities of training knowledge of business management contributed to meet needs of training, enhancing abilities and skills of management for rural industrial production establishments, encouraged potential enterprises to invest and produce industry – small industry and handicraft. Tasks of human resource training helped rural industrial production establishments increase rate of officials that was trained and heightened management knowledge from 20 to 25%.
By means of activities to support trade promotion and broadcast products, tasks of industrial promotion helped rural industrial production establishments find business partners and set up satellite establishments inside and outside the province.
III. Common assessment
1. Obtained results
Cared by Dong Nai province people’s committee, provincial branches and departments related, Dong Nai Industry and Trade has been made favorable conditions and supported to have initial material facilities and stabilize organization so that it gradually comes into operations of industrial promotion. During the first time, focused missions that were defined are to concentrate on coordinative tasks with every locality and establishment in provincial areas, to gradually collect information and grasp situations, real needs. On the basis of that, together with districts, Long Khanh town and Bien Hoa city, setting up annual plans and programs of industrial promotion to implement tasks of supporting and developing rural industry.
Activities of industrial promotion in Dong Nai gradually affirmed the role and position in community of rural industrial production establishments and obtained some encouraging results such as: the number of establishments, enterprises which produced in the fields of industry – small industry and handicraft in Dong Nai increasingly grew in quantity, scale, quality, qualification of management and organization; laborers’ skills were raise remarkably. Tasks of vocational training were always attached to received establishments and originated in rural industrial establishments’ needs, therefore it was favorable in arranging outputs after training.
On the other hand, deploying and implementing tasks of industrial promotion in the past years helped force of industrial promotion officials sum up a lot of experience, helped professional skills of industrial promotion officials to be little by little raised evidently. The cemented relationship of Dong Nai Industry Promotion Center with Bureau of Industry and Trade/ Economy together with Industry Promotion Centers in neighboring provinces was the basis of experience exchange and accomplishing tasks of industrial promotion.
2. Difficulties
Qualifications and experiences of officials who are working tasks of industrial promotion from communal level to provincial level has been elevated but there exists limitations. Force of officials working tasks of industrial promotion in districts is not strong enough. In many a time, at many places, officials don’t know thoroughly roles of industrial promotion, so implementation is met with troubles. Industrial promotion officials at communal and district level are changed so frequently that implementation of industrial promotion tasks in provincial localities is influenced.
Progress to carry out some contents of industrial promotion happened slowly compared to proposed plans because time to approve projects prolonged and due to influence of global economic recession for rural industrial production establishments.
Setting up contents and plans of industrial promotion annually in provincial localities didn’t appropriate to real needs of enterprises, therefore implementing and carrying out plans face many difficulties.
Guiding Circular to implement industrial promotion is promulgated slowly. Supportive contents and levels really don’t encourage enterprises to invest and extend production bravely. Otherwise, supportive procedures have a lot of complication and don’t anticipate problems that arise in the reality of implementing.
3. Causes
Though propagandic tasks of rural promotion policies were carried out frequently, many rural industrial establishments really didn’t care and know thoroughly meanings of supportive contents. In addition, tasks of industrial promotion in establishments were held concurrently. There are not responsible cadres and these forces were changed frequently.
Due to influence of global economic recession, productive reduction occurred in some rural industrial production establishments. Allocations of invested source of capital, land procedures, progress of ground clearance and task of propagandizing investors are not timely. It is because that people who participate in labor force at resettlement zones are in work while needs of occupational conversion is very diversified, not concentrated and that many branches and trades don’t belong to fields of industrial promotion support.
Tasks of operational needs survey are not implemented properly in local areas. Approach to enterprises of rural industry is still limited. Material facilities of Industry Promotion Center at present can’t meet real needs, especially area of ground to carry out product present, training, design and support of model production…