The results of the industrial complex of the Vitebsk region have been summarized: the net profit of enterprises has doubled
"In 2019, the total net profit for the industrial complex of the region amounted to Br505 million, compared to Br258 million in the previous year. This means that the net profit of enterprises has doubled. This is a good indicator, although there are still enough problematic issues. The dynamics of sales profitability are also not bad: it was 3.1%, and now it is 4.3%," said the head of the region.
Nikolai Sherstnev noted that industry accounts for more than 30% of the region's GDP. In the total revenue, organizations of the industrial sector of the economy account for 67%. More than 1,000 entities of various forms of ownership operate in this sphere. More than 100,000 people work at these enterprises.
Among the positive results, the head of the region mentioned a reduction in loss-making organizations: there are 34 of them today (previously 44). At the same time, each of them needs to be dealt with in detail, as such organizations negatively affect the image of the region and create tension in work collectives.
Over the four years of the current five-year period, the industrial production index has reached 102.6%. The Naftan enterprise has a significant impact on the overall picture. Excluding its performance, this indicator stands at 113.5%. "This means that communal enterprises, both departmental and non-departmental, are achieving quite respectable figures," stated the governor. He also emphasized that production efficiency should be at the forefront of all enterprise activities: it is necessary to clearly understand market demands, how to sell products, and how to generate profit.
Anzhelika Nikitina, Chairperson of the Economics Committee of the Vitebsk Regional Executive Committee, provided details on the foreign economic activities of enterprises. "The region's enterprises' products are in demand on foreign markets. Over the past year, about 50% of the manufactured products were shipped abroad, with over 5,000 types of products supplied to 78 countries worldwide. Shipments to Algeria, Bahrain, Bangladesh, Morocco, Pakistan, Tunisia, and Tanzania have commenced," she noted. As a result of market diversification, Russia's share has decreased to 42%. EU countries account for 25%, and others for 33%. One-third of the total industrial goods export volume consists of high-tech products. "However, the economy needs innovations of the 5th-6th technological order, while our projects are mainly of the 3rd-4th technological order. Enterprises should work more actively with educational institutions in this regard," believes Anzhelika Nikitina.
The share of innovative products shipped by the Vitebsk region in 2019, as in previous years, was over 30%. 67 enterprises of communal and non-departmental subordination produced import-substituting products in 85 commodity positions worth $515 million. The growth was about 8% compared to 2018. More than 60% of these products are exported. It was also possible to reduce the import intensity of manufactured products, although, on the whole, every second industrial enterprise in the region is closely dependent on external factors. Anzhelika Nikitina emphasized that private sector organizations work more efficiently and flexibly, responding faster to changes in market conditions. State enterprises should also strive for this.
The meeting concluded with the awarding of the Vitebsk Regional Executive Committee prize for achievements in quality for 2019, awards to the winners of the competition "Best Goods of the Republic of Belarus", "Best Manager of the Year of the Vitebsk Region", "Best Design Engineer of the Vitebsk Region", "Best Scientific Developer of the Vitebsk Region", and honorary diplomas of the Vitebsk Regional Executive Committee's Economy Committee.