Support industries should be key sector

Support industries in Vietnam remain small in scale and spontaneous in operation in recent years. In this light, the sector is working on important solutions to become key industries in 2017. 

Meeting only 10 percent of domestic demand

According to the Ministry of Industry and Trade’s Department of Heavy Industry, domestic enterprises have so far satisfied only 10 percent of the domestic demand for support industry products.

Specifically, they met 30-35 percent, 40 percent, 15 percent and five percent of the domestic demand for electronic components, automotive and motorcycle kits, information technology and communication (ITC) and hi-tech electronic parts, respectively.

Department of Heavy Industry Deputy Director Pham Tuan Anh said that Vietnamese support industry enterprises remain poorly competitive while depending largely on imported materials. Statistics showed that Vietnamese enterprises imported components and parts at US$54 billion in 2015, including computers and electronic products worth about US$21 billion and phone components worth US$10 billion, among others.

These problems have obstructed the implementation of the Ministry of Industry and Trade’s Master Plan for Support Industry Development to 2020. According to the plan, domestic support industry enterprises will meet 45 percent of the domestic demand and export 25 percent of their products in the next five years.

Leading enterprises needed

Appropriate and efficient solutions are very important to develop support industries. Economists have said that in the coming years, the government should support businesses by creating initial outlets and providing investment support for domestic enterprises to make it possible for them to build long-term investment and development strategies for support industries. After the policies are issued, enterprises need to commit to accomplishing their roadmap and continuing development after the government’s support ends.

Thaco Truong Hai Chairman Tran Ba Duong said that it is very difficult for support industries to grow without outlets and leading enterprises. With the aim to contribute to building the automobile industry into an important sector to satisfy the domestic demand, while exporting products and services and having a positive impact on the development of other industries , Thaco Truong Hai kicked off a project to expand the Chu Lai - Truong Hai Industrial Zone by 268ha in April 2016. The company will also construct new establishments to manufacture cars, trucks, buses and minibuses in the near future.

Besides, Thaco Truong Hai has expanded and upgraded its existing factories to increase the production capacity ranging from simple mechanical parts to high-quality products while enhancing research and development (R&D), strengthening market research to improve product development capability, and making new products for export and the domestic market.

Saigon Transportation Mechanical Corporation (SAMCO) General Director Tran Quoc Toan said that it is important to encourage enterprises to develop high technology. SAMCO has successfully developed buses and cars using the CNG technology, which yield high economic efficiency and contribute to minimizing gas emissions. The products have been highly rated by users in Ho Chi Minh City.

Lan Anh / VEN