(VEN) – The supporting industry for Vietnam’s mechanical engineering sector is facing numerous challenges related to policies, workforce, production costs, and industry linkages.
Lack of leading enterprises
Some Vietnamese mechanical products are of equivalent quality to products of other countries in the region. Domestic enterprises manufacturing mechanical components have relatively good capabilities in fields, such as molding, electric cables, plastic components, and technical rubber. Aware of high market demand, many enterprises have invested in enhancing production capabilities to create quality products to serve foreign invested companies and export.
As a result, domestically produced metal components have met 85-90 percent of the demand for motorcycle production, 15-40 percent for automobile component production, about 20 percent for complete equipment production, 40-60 percent for agricultural machinery and engines, and 40 percent for construction machinery. Currently, the supply of metal components for high-tech industries meets about 10 percent of the demand. There are pioneering supporting industry enterprises, such as Thaco Industries in Quang Nam Province’s Thaco Chu Lai Industrial Park.
Currently, the supply of metal components for high-tech industries meets about 10 percent of the demand |
Truong Thi Chi Binh, Secretary General of the Vietnam Association of Supporting Industries (VASI), believes that mechanical and supporting industry enterprises are facing a significant opportunity as Vietnam participates in many free trade agreements. These agreements will give mechanical enterprises an advantage in exports, helping them attract foreign investment.
According to the Vietnam Association of Mechanical Industries (VAMI), despite the strong impact of the Fourth Industrial Revolution, Vietnam’s level of manufacturing, especially precision mechanics – the pillar of industrial production, remains outdated compared to many other countries.
Long-term solutions
Specializing in supplying mechanical and automation equipment for plastic casting factories, the ASG Technology Vietnam Company Limited has to import 100 percent of steel materials to manufacture the one-way valve set for plastic injection machines used to produce automobile and motorcycle components.
Assoc. Prof., Dr. Nguyen Chi Sang, President of VAMI, said that the Government needs to promote the development of complete mechanical products, such as high-speed railways, urban railways, medical equipment, and bauxite plant chains.
According to Le Van Tuan, General Director of the Vietnam Machinery Installation Corporation (LILAMA), to resolve problems facing the mechanical engineering sector, it is necessary to create long-term loan sources with stable interest rates for mechanical enterprises, put in place tender regulations to help increase the use of domestically produced materials and goods, and create a market for domestic mechanical enterprises.
Nguồn: congthuong.vn