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For supporting industry to develop in a sustainable way

Over the past time, the whole country has prioritized to attract investment in the development of supporting industries, but the lack of general planning can lead to a shortage of industry and redundancy in the long term. This will not satisfy the requirement of sustainable industrial development.


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Manufacturing supporting industry at kyokuto Vietnam Co., Ltd. in Nhon Trach 3 Industrial Park phase 2

Manufacturing supporting industry at kyokuto Vietnam Co., Ltd. in Nhon Trach 3 Industrial Park phase 2

Dong Nai currently has 39 industrial zones approved by the Government with a total area of nearly 19,000 hectares. In which, there are 31 industrial parks in operation, attracting nearly 1.9 thousand projects, including 1,370 foreign direct investment projects and 521 domestic projects.

* Develop key industries
In attracting FDI into the supporting industry, the province stipulates to have modern, environmentally friendly technology with high added value. Therefore, the FDI projects investing in this sector are quite diversified. Up to now, the province has more than 600 businesses (DN) supporting industry. In which, the supporting industry of mechanical manufacturing industry has 254 enterprises, accounting for nearly 42% of the total number of supporting industry enterprises; Textile and garment industry has about 137 supporting industry enterprises, accounting for 23%; the leather and footwear industry has 110 enterprises, accounting for 18%; in the electronics industry, there are 79 enterprises, accounting for 13% ...

Mr. Le Van Danh, Deputy Head of Dong Nai Industrial Zones Authority, said: “The province gives priority to inviting projects in the supporting industry with advanced technology to meet the input supply. for many FDI enterprises in Vietnam. The investment support industry projects in the province are quite diverse in many different industries, but most are still mechanical engineering, textiles, footwear. This is an industry in many other provinces in the country that are attracting FDI ”. There are currently no plans to develop supporting industries for the Southern Key Economic Zone or other economic regions. Many enterprises said that the Government should soon have regional planning for the development of supporting industries so that localities will not be encroached upon each other. Attractive FDI projects, when put into operation, can connect the supply of input products to each other and avoid redundancy and shortage.

Mr. Liu Chau Bang, Human Resources Administration Manager of Vietnam Center Power Tech Co., Ltd. located in Nhon Trach 2 Industrial Park (Nhon Trach district) said: “The company specializes in manufacturing batteries, accumulators for supply for large telecommunications corporations of Vietnam and abroad. Many of the company's inputs have to be imported, so the company hopes to have domestic suppliers to reduce imports. In order to have an abundant source of domestic raw materials, Vietnam should have a plan to develop supporting industries for all industries”.

ve an abundant source of domestic raw materials, Vietnam should have a plan to develop supporting industries for all industries”.

pp10a.jpgManufacturing supporting industry at kyokuto Vietnam Co., Ltd. in Nhon Trach 3 Industrial Park phase 2

 

Manufacturing supporting industry at kyokuto Vietnam Co., Ltd. in Nhon Trach 3 Industrial Park phase 2


* Connecting supply and demand

At trade conferences linking supply and demand between domestic enterprises and FDI enterprises in the province, FDI enterprises all want to find a source of raw materials in the domestic market to reduce imports. Therefore, enterprises can proactively source raw materials for production, increase the localization rate of products, and can enjoy tax incentives when exporting to countries that Vietnam has signed trade agreements with. due to bilateral and multilateral. Although supporting industries in Dong Nai and neighboring provinces have developed, supply and demand have not met. For example, chemicals and plastics annually Dong Nai spends nearly 2 billion USD to import from other countries, and this product exports over 1 billion USD from enterprises in the province.


Assoc.Prof.Dr. Nguyen Tien Hoang, lecturer at the University of Foreign Trade of Ho Chi Minh City shared: “In the development of supporting industries, if the Government has a clear plan, which occupations each locality attracts so as not to duplicate and then connecting supporting industry enterprises with other businesses to sell input products to each other will reduce imports and increase trade surplus. Sufficient domestic raw materials will help businesses easily enjoy tax incentives when exporting ”.

The development of supporting industries means an abundant supply of inputs for industrial production will increase the attractiveness of FDI investors in different industries.

Vi Quan




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