With open mechanisms in attracting investment, in the province, there have been a number of projects and enterprises involved in the supporting industry. These enterprises have contributed to improving the localization rate and the overall growth of industrial production of the province....
With open mechanisms in attracting investment, in the province, there have been a number of projects and enterprises involved in the supporting industry. These enterprises have contributed to improving the localization rate and the overall growth of industrial production of the province....
The production at Vietnam Auto Parts Co., Ltd (Van Lam)
According to the Department of Industry and Trade, there are more than 190 projects manufacturing supporting industry products. The province's supporting industry has formed quite clearly in the fields of: Mechanical engineering; electrical equipment, electronic; textile and garment; leather shoes; manufacturing and assembly of automobiles and high-tech industrial products. Although the output has not completely met the demand, the developed supporting industry has also provided a large volume of supporting industry products to serve the production of key industries in the province in particular and the country in general, especially the supporting industries of mechanical engineering, electrical and electronic equipment, textiles and clothing, contributing to raising the localization rate of these industries. In addition, thanks to the development of supporting industry in recent years, production linkages have been formed among all economic sectors, between domestic production establishments and foreign-invested enterprises, between supporting industry satellites and supporting assembly enterprises. This is also one of the important prerequisites in continuing to strengthen the linkages in production among economic sectors in the coming time.
However, according to experts, the competitiveness of some supporting industry products is still low. Supporting industry products for key industries are still modest, most of them just stop at some component products, supporting industry products with high technology content are still low, mainly processing and assembling components and simple products; raw materials and materials are mainly imported from abroad, so products have low added value, use a lot of laborers...
Textile and garment is assessed as an industry with the production value and export turnover accounting for a large proportion of the province's industry and creates jobs and stable income for many workers. According to the survey results in the province, the proportion of textile supporting industry establishments accounts for only 2.3%, but the production value accounts for 18.6% of the total number of textile and garment establishments. However, the supporting industry products of this industry mostly do not meet the requirements of customers in terms of type, price and richness. Textile and garment enterprises still depend heavily on raw materials and mainly manufacture and process for foreign enterprises. Currently, textile and garment enterprises have the opportunity to boost exports due to preferential treatment when Vietnam joins free trade agreements. However, in order to enjoy incentives such as tax reduction and exemption from trade agreements, the principle of origin for yarn and fabric is always strictly set by partners. Many enterprises have not yet signed direct export contracts, so they still have to sign contracts through other focal export enterprises.
The production at Hung Long Garment Joint Stock Company II (Hung Yen city)
Despite accounting for 35.8% of the number of establishments, the supporting industry of electrical and electronic equipment accounts for over 47% of the industry's production value. However, the enterprises supplying components and selling electrical and electronic products are currently mainly from Japan, Korea, and Taiwan (China), the number of enterprises and domestic investment capital accounts for a low proportion; mainly assembling, heavily depending on imported components; lacking of high-quality labor resources. Currently and in the future, the wave of foreign investment in Vietnam will create opportunities for the development of this field, but domestic investors also face many difficulties due to the competition in capital and technology. …
To achieve the goal by 2025, supporting industry will become an important industry of the province, capable of producing and supplying components and spare parts for a number of domestic industries; by 2030, supporting industry will step by step participate in the global supply chain of large multinational corporations in the world according to the project on development of supporting industry in Hung Yen province to 2025, with an orientation to 2030, the province will continue to direct the synchronous implementation of groups of solutions on planning, construction and technical infrastructure development of industrial zones and clusters; conduct mechanisms and policies to attract investment; improve the investment and business environment... To gradually attract investment in the direction of prioritizing projects that produce supporting products to supply high-tech industries, and environmentally-friendly production projects, create products with great added value, products for export, at the same time creating brands of industrial products. To actively coordinate with localities in the region, especially localities in the Northern key economic region such as Hanoi, Bac Ninh, Vinh Phuc and Hai Phong to organize production connections and regional linkages to look for production cooperation opportunities. To diversify in cooperation, joint venture and association with foreign investors to provide components and auxiliary products. To support small and medium enterprises to improve their competitiveness in the production of supporting industry products to gradually participate in the linkage chain, thereby gathering enterprises with important links in the process of creating added value from raw materials, production, to distribution, consumption and sales. To actively organize investment promotion, link and cooperate with multinational corporations...
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