In 2017, Br1.3 billion of investments were attracted to the economy of the Vitebsk region
According to the governor, the investment policy was focused on the development of the production sector: one-third of the attracted investments were directed to the manufacturing industry, and a quarter - to the development of agriculture. For example, the Polotsk Dairy Plant modernized its production with the reconstruction of an ammonia compressor. The Verkhnedvinsk Butter and Cheese Factory updated its cheese production, and the Gluboksky Condensed Milk and Powdered Milk Plant is completing the construction of a workshop for the production of whey and dry milk products. The second stage of modernization of the Orsha Flax Mill has been completed. Large projects are being implemented by companies such as "Marko", "Naftan", and others.
Nikolai Sherstnev drew the attention of the session participants to improving the efficiency of the region's economic sectors. In particular, net profit has almost doubled. Enterprises of communal ownership received profit this year (last year they incurred losses). The number of loss-making organizations has decreased by one-third. The situation with debts is stabilizing. The share of overdue loans and borrowings has decreased. An increase in overdue accounts payable has not been allowed. A positive trend in wage growth has been ensured.
"By the end of the year, the region plans to fulfill 8 out of 9 socio-economic development indicators (direct foreign investment on a net basis is in doubt). Growth is ensured in industrial and agricultural production, retail and wholesale trade, export of goods and services, and labor productivity," the governor stated. Industry plays a fundamental role in the production sector in the region, Nikolai Sherstnev noted.
It is formed by over 1.1 thousand organizations of all forms of ownership, and a quarter of the total number of people employed in the economy are concentrated there. This year, in the industrial complex
much has been done in the region. Gross value added has increased, net profit has grown, sales efficiency and labor productivity have improved, and costs have been optimized. Growth in production volumes has been ensured in all major industries. A third of industrial products are innovative.
At the same time, non-departmental organizations, primarily small and medium-sized businesses, are the most effective, emphasized the chairman of the regional executive committee. They account for about 20% of the industrial production volume and half of the exports (excluding OJSC Naftan), and the focus of work is on the production of export-oriented products with high added value. In this regard, Nikolai Sherstnev drew the attention of the director corps to the fact that in enterprises of this form of ownership, labor productivity per revenue is a quarter higher than in industry as a whole, and sales profitability is higher (12.5% compared to 5.6% in industry as a whole). More than half of the region's total industrial production is exported, and 15% of the shipped volume is high-tech and science-intensive products.
At the same time, in the total export volume, despite a significant raw material base, only 10% comes from woodworking products. Moreover, they are almost entirely supplied abroad with low added value. "This includes chips, sawdust, boards, and timber. 60% is shipped for further processing or resale. According to our calculations, we lose up to $10 million a year just on shipped sawdust volumes," the governor emphasized.
He demanded the creation of several own production facilities for finished woodworking products – fuel pellets and granules, and that all existing enterprises in this sector focus on the production of high value-added products.