Developing supporting industries for the mechanical industry is necessary and urgent.

The mechanical industry has significant growth in scale and products.

According to the Department of Industry ( Ministry of Industry and Trade ), mechanical engineering is one of the key industries of the economy, playing an important role in providing raw materials and equipment for many other manufacturing industries such as: construction, automobiles, electronics, energy, aviation and many other fields. In Vietnam, in recent years, the mechanical engineering industry has had significant growth steps, both in scale and products, not only meeting domestic demand but also for export.

The report of the Ministry of Industry and Trade shows that currently, the whole country has about 3,100 mechanical engineering enterprises with 53,000 production facilities, accounting for nearly 30% of the total number of processing and manufacturing enterprises in Vietnam. The total revenue of the industry reached more than 1.7 million billion VND, creating jobs for over 1.2 million workers. The domestic mechanical engineering - machinery and equipment industry has gradually mastered and participated in the production and supply chain for a number of large enterprises such as Toyota, Thaco , Thanh Cong..., creating a driving force to promote the development of other industrial and economic sectors.

Many domestic mechanical enterprises have promoted investment and technology transfer, improving competitiveness through the application of advanced technology in the production of products such as molds, mechanical components, plastics and technical rubber... which have basically been met at a high level. Specifically, domestically produced metal components have met about 15 - 40% of the demand for components for automobile production (depending on the vehicle type).

According to Mr. Do Phuoc Tong, Chairman of the Ho Chi Minh City Association of Mechanical and Electrical Enterprises (HAMEE), Vietnam is in a pivotal period, when the need for technological innovation, automation and digital transformation becomes a must if businesses want to survive and expand internationally. Currently, the Vietnamese mechanical industry is focusing on three key areas: motorbikes and spare parts; household mechanical tools and products; and automobiles and auto components. All three account for about 70% of domestic production value. This proves that these are areas with large demand and stable growth in the country, Mr. Tong said.

Experts say that from now until 2030, the demand for mechanical engineering will be about 310 billion USD, the demand for automobiles alone will be 120 billion USD, but Vietnam can only meet about 1/3 of that. Vietnam also continues to be an attractive destination, attracting more FDI projects as many foreign customers come to our country to find new suppliers. This is an opportunity for domestic mechanical engineering enterprises in the next phase.

Vietnam Association of Mechanical Enterprises (VAMI) informed that, despite the strong impacts of the 4.0 industrial revolution, the level of mechanical engineering, especially precision engineering - the pillar of industrial production - is still backward compared to many countries. Enterprises face many challenges in improving technology, keeping up with trends, improving labor skills, infrastructure quality... to be able to participate in the global supply chain and great competitive pressure from countries in the region as well as in the world.

*Currently, the whole country has about 3,100 mechanical engineering enterprises. Photo: PV*

Shift from spread to depth, from processing to innovation

According to experts, to participate more deeply in the global value chain, domestic mechanical enterprises need to change their investment mindset, especially mechanical support technology from widespread to specialized, from processing to innovation such as: product and process specialization, especially strategic components for automobiles, motorbikes, electrical equipment; linking enterprises - research institutes - industrial parks, forming closed domestic production clusters; automating and digitizing production processes, meeting international standards (ISO, IATF, ESG), creating "technology visas" to enter the global supply chain.

Experts proposed the need to establish a Mechanical and Manufacturing Technology Innovation Fund to support businesses in investing in automation equipment, industrial robots and production management software; build specialized support industrial clusters following the “Metal Valley” model of Thailand; encourage technology transfer from FDI enterprises, promote cooperation in training engineers and technicians; train high-quality human resources, and link vocational training programs with modern industrial needs.

To develop the mechanical industry in general and the mechanical support industry in particular, VAMI also believes that there should be an output support program by connecting with potential buyers of each industry; incentives for medium-sized supporting industry companies to invest in expanding production, training human resources, financial support... At the same time, helping businesses have more conditions to access new technology. It is necessary to consider equal investment incentives between domestic mechanical enterprises and FDI enterprises. In addition, the state should also create many orders, including orders for supporting industrial products for Vietnamese mechanical enterprises, especially public investment projects. VAMI proposes that mechanics is an industry that needs to be included by the State in the supporting industry development program and enjoy certain preferential policies.

According to Deputy Director of the Department of Industry Nguyen Ngoc Thanh, the Ministry of Industry and Trade will continue to strongly develop downstream industries, including precision mechanical engineering and mechanical manufacturing industries, to ensure that supporting industries have conditions to develop. This will attract multinational corporations to invest in large-scale projects in Vietnam. By promoting the manufacturing and assembly of finished products, the market for domestic supporting industries will be maintained and expanded, creating the premise for domestic mechanical enterprises to become suppliers and participate in the supply chain of enterprises manufacturing and assembling final products.

Source: https://daibieunhandan.vn/phat-trien-cong-nghiep-ho-tro-nganh-co-khi-la-dieu-can-thiet-va-cap-thiet-10390574.html