Making supporting industry the spearhead of Hai Phong's growth

With a strong industrial and service foundation, a modern industrial park system and large-scale FDI capital flows, Hai Phong is facing the opportunity to develop supporting industry into a new growth pillar.

The localization rate in leather and footwear in Hai Phong has reached 45 - 50%. In the photo: Workers producing leather shoes for export at Sao Vang Company Limited. Photo: LE HIEP

There are still barriers and obstacles

After the merger, the new Hai Phong city has the third largest economic scale in the country and is also one of the leading localities nationwide in attracting foreign direct investment (FDI) with 1,740 valid projects with a total registered investment capital of over 50 billion USD.

FDI capital has shifted from breadth to depth, attracting more and more large-scale, high-tech projects from the world's leading corporations such as: LG (10.59 billion USD), Bridgestone (1.22 billion USD), Regina Miracle (1 billion USD), Pegatron (900 million USD)... These projects not only bring in large capital but also contribute to technology transfer, improve production capacity and shape the city's key industries.

However, most domestic enterprises in Hai Phong in particular, and Vietnam in general, are still at a low position in the supply chain, mainly undertaking simple processing and assembly. According to a recent survey by the Japan External Trade Organization (JETRO), among more than 6,000 supporting industry enterprises operating in Vietnam, the rate of meeting domestic demand of Vietnamese enterprises is only about 10%. The localization rate in key industries is still low: Mechanical engineering only reaches 15 - 20%, automobiles from 5 - 20%, textiles - footwear about 45 - 50%. These figures pose a challenge, at the same time showing that the development space of the supporting industry, especially in large industrial centers like Hai Phong, is still very large.

Deputy Director of Hai Phong Department of Industry and Trade Le Ngoc Lan said that although the localization rate in the city has made significant progress, with textiles, footwear reaching 45-50%, and mechanical engineering reaching over 30%, there is still a large gap compared to the requirements of the integration process.

Previously, Hai Phong issued a program for developing supporting industries until 2025, with a vision to 2030, with a budget of more than 1.9 billion VND to support businesses. The goal is to meet 60-65% of local production needs by 2025 and over 70% by 2030. Hai Phong also conducted a survey of 177 businesses in the fields of mechanics, electronics, textiles, footwear, and automobiles to update data on the national information system on supporting industries.

However, there are still shortcomings in the implementation process such as limited policy enforcement effectiveness, propaganda activities are not widespread, many businesses lack information, and there is a lack of specialized departments to exploit policies...

Making supporting industry a growth driver

Supporting businesses must meet requirements on quality, progress, cost and compliance with standards and laws if they want to be higher in the supply chain. In the photo: Vinfast automobile factory in Hai Phong with the localization rate of electric vehicles reaching more than 60%. Photo: LE HIEP

According to experts, in order for supporting industry to truly become a new growth driver, Hai Phong needs to synchronously deploy many strategic and long-term solutions, in line with the orientation of restructuring the industrial economy towards modernization.

Recently, the Hai Phong Economic Zone Management Board organized a conference to connect FDI enterprises in industrial parks and economic zones in the city with domestic supporting enterprises in 2025. Speaking at the conference, Mr. Tran Van Thang, Chairman of the City Business Association, Chairman of the Board of Directors of Sao Do Group said: "Regarding the importance of supporting industry and the picture in Hai Phong, I think supporting industry is the decisive link in the depth of localization, the speed of supplying goods and products and the adaptability and recovery of the supply chain".

According to Mr. Thang, to get deeper into the FDI chain, supporting enterprises must meet the requirements of quality, progress, cost and compliance with standards and laws. At the same time, there needs to be strong support from the Hai Phong Economic Zone Management Board and the city government. When FDI is transparent about its needs, the City People's Committee directs, the Management Board coordinates, and supporting industry enterprises raise standards and take the initiative, then each connection session will generate many orders, not just a formality.

Mr. Bui Manh Quyet, General Director of Van Long Technical Plastics Joint Stock Company, proposed that the Hai Phong Economic Zone Management Board could organize more specialized networking forums by industry such as plastics, mechanics, and electronics between Vietnamese enterprises and FDI enterprises operating in the industrial park; support domestic supporting enterprises in technology transfer, technical training, and standardization of production processes. Provide a list of specific component needs of FDI enterprises so that Vietnamese enterprises can have appropriate investment orientations and improve their capacity...

At the conference, Mr. Le Trung Kien, Vice Chairman of the City People's Committee, Head of the Hai Phong Economic Zone Management Board affirmed that the board will actively support in connecting and introducing the potential and capacity of domestic enterprises with FDI enterprises, providing information on the needs and specific standards of foreign investors to the local business community. The board also called for a proactive, creative and determined spirit from both sides. FDI enterprises should share technical requirements and work together to help domestic partners meet standards. Domestic enterprises should constantly improve their capacity, innovate their thinking and boldly introduce themselves to the "giants" right next door.

The Hai Phong Department of Industry and Trade is also preparing to build a development program for the period 2026 - 2035 and is in dire need of businesses to proactively propose tasks and support programs that are suitable to reality. This is an opportunity for businesses to have their voices heard, so that policies can be built in the most effective and practical way. The Department of Industry and Trade expects the business community to actively research and apply new policies, thereby improving technological capacity, innovating production and making the supporting industry a solid pillar of the city's and national economy.

LE HIEP

Source: https://baohaiphong.vn/dua-cong-nghiep-ho-tro-tro-thanh-mui-nhon-tang-truong-cua-hai-phong-526734.html