Promote the development of mechanical industry

With about 3,600 enterprises and mechanical manufacturing facilities in operation, creating jobs for over 48,000 workers, the province's mechanical industry has gradually mastered and increased the localization rate, creating a driving force to promote the development of other industries and economies . However, limitations in the supply of production materials are a major barrier to the development of this industry.

Manufactured at Hoa Phat Hung Yen Steel Company Limited (Yen My)

According to statistics from the functional sector, the structure of the province's mechanical industrial products is increasingly diverse, such as: Steel rolling (as raw material), steel casting, alloy casting, engine manufacturing, industrial machine parts casting... In which, it focuses on 3 main sub-sectors, including motorbikes and motorbike spare parts; household mechanics and tools; automobiles and automobile spare parts.

Currently, the province's mechanical component manufacturing enterprises have quite good capacity in a number of fields such as molds of all kinds, mechanical components, electric cables, plastic components, technical rubber... In addition, the demand of the supporting industry market is very large, so many enterprises have boldly invested to improve production capacity, focusing on developing quality product lines, serving foreign direct investment (FDI) enterprises, aiming at exporting mechanical products.

According to the Department of Industry and Trade, with Vietnam participating in many Free Trade Agreements (FTAs), the province's mechanical and supporting industry enterprises are facing great opportunities, having more advantages when being able to export to markets, while attracting foreign investment to Vietnam. Currently, the province's domestically produced metal components meet 85-90% of the demand for motorbike production, about 15-40% of the demand for components for automobile production, about 20% for the production of synchronous equipment; supplying about 10% of the demand for metal components for high-tech industries... In some key areas, the province's mechanical enterprises can master the technology, manufacture and manufacture mechanical equipment for the mining, thermal power, chemical industries, and synchronous equipment for manufacturing industrial factories... Typical examples include: Vietnam Automobile and Motorcycle Parts Manufacturing Company Limited, Ding Hong Precision Engineering Company Limited, TOMOCO Vietnam Mold Joint Stock Company... In which, Vietnam Automobile and Motorcycle Parts Manufacturing Company Limited (VAP) headquartered in Van Lam district is the investor of the Vietnam Automobile and Motorcycle Parts Manufacturing Factory with a total investment of 90 million USD. This is one of the first successful cooperation models between Vietnam and Japan in the field of automobile and motorcycle parts manufacturing in Vietnam. VAP is a supplier of spare parts for Honda Group. VAP is also the largest mechanical enterprise in the province, providing jobs for over 1,500 workers.

In recent times, the province has focused on attracting investment projects to develop the processing and manufacturing industry; supporting industry, high-tech industry, and environmentally friendly industry to create growth momentum. With the goal of promoting the mechanical industry to develop more strongly, making industry a key economic sector, the province has increased programs and measures to encourage and support enterprises to invest in depth, improve product quality to meet international standards. In particular, it continues to focus on supporting and attracting enterprises to invest in mechanical fields serving the automobile and motorbike mechanical industries, construction mechanical engineering, electrical equipment and materials, etc. In addition, the Provincial People's Committee has directed functional branches to increase support for enterprises in the province to connect with large enterprises in the world in the value chain to access and receive technology transfer, standardize products, and focus on new technologies of the 4.0 industrial revolution to have opportunities for breakthrough changes. Promote support for mechanical enterprises to participate in trade promotion activities to increase opportunities to access many large customers and expand export markets for the province's mechanical products...

However, at present, most of the province's mechanical enterprises have not yet mastered their capital sources, have to borrow to invest at high interest rates and are bound by unfavorable conditions from sponsors or financial partners; technology is still simple. Along with that is the lack of connection and gathering of mechanical enterprises, leading to difficulties in forming specialized mechanical enterprises, bringing investment efficiency. Ms. Nguyen Thi Thanh Ha, Chairwoman of the Provincial Business Association, said: Most domestic enterprises are small and medium-sized, so it is difficult to compete with large-scale foreign enterprises, as well as difficult to access support policies. Regarding taxes alone, if foreign enterprises invest in production in Vietnam, they will be exempted or have reduced import taxes on technology and production lines; medium-term loan interest rates for production are also low; enjoy preferential land rental costs, even receive support for investment land area; and have reduced electricity costs; Reduce corporate income tax in the first few years... As for domestic enterprises, if they import technology and investment lines for production, they also have to find land to build factories...

The business community in general, and the mechanical engineering industry in the province in particular, need to be concerned about policies and supported to solve some problems for development. In particular, supporting loans and connecting large international enterprises and corporations are extremely important, in order to promote and "create traction" for the mechanical engineering industry to participate in the value chain. In addition, there should be flexible mechanisms and policies to encourage enterprises to invest, expand production, increase the localization rate...

Pham Dang

Source: https://baohungyen.vn/thuc-day-phat-trien-nganh-co-khi-3174517.html