Bac Ninh Province targets greater participation in global value chain

13:00 | 24/07/2020 Industry

(VEN) - Bac Ninh Province has gradually joined the global value chain over the past decade by realizing the key importance of its supporting industries and adopting policies to develop them.

bac ninh province targets greater participation in global value chain
Bac Ninh’s supporting industry enterprises create jobs for 80,000 employees

The major impetus for the province’s supporting industry was the 2008 launch of a Samsung Group manufacturing plant. Taking advantage of its geographical location just east of the capital Hanoi, the northern province implemented reforms of its investment procedures and completed infrastructure projects, becoming an attractive destination for both domestic and foreign investors. These include major global corporations such as Samsung, Canon, Nokia, Foxconn and PepsiCo.

The province now has over 400 supporting industry enterprises including nearly 300 foreign-invested ones with total capital of about US$3.1 billion. Bac Ninh has focused on three key industries: electronics and informatics; mechanical engineering; and processing of agricultural products, foodstuff and beverages. These three industries account for over 96 percent of the total provincial industrial production.

However, the impressive supporting industry achievements are due mostly to companies based on foreign direct investment (FDI) while most domestic enterprises active in this field are small in scale, low in competitiveness, and limited in investment capacity. In addition, implementation of some guidelines and policies for the support of domestic enterprises in the supporting industry is still slow and faces many difficulties.

Among the many mechanisms and policies Bac Ninh has adopted in this regard are the formation of two supporting industrial clusters - the Tan Chi 2 Supporting Industrial Cluster (Tien Du District) and Cach Bi Supporting Industrial Cluster (Que Vo District), with a total area of about 122ha and a total investment of more than VND1.6 trillion.

Bac Ninh has also promulgated a regulation on not only management of funding and development of supporting industry but also the specific expenditure level of supporting industry development activities in the province. In addition, the province plans to set up a research center for application development and technology transfer in supporting industries to serve as a focal point for organizing, connecting and implementing local supporting industry development.

According to a representative of the Bac Ninh Department of Industry and Trade, local industry focuses on not only preserving and developing traditional industries but also on expanding many new products.Notably, investment capital from large corporations such as Samsung, Canon, Sumitomo, Foxconn, and others has resulted in breakthroughs for the local electricity and electronics industry. In 2019, the province’s industrial production value reached over VND1 trillion and maintained the leading position in the country.

In order to continue creating momentum for industrial development, Bac Ninh will issue additional policies to attract enterprises and investors, especially to supporting industries in the fields of electronics, mechanics, information technology, and automation.

Bac Ninh’s supporting industry enterprises have created about 80,000 jobs inside and outside the province, over 70,000 of them in FDI enterprises.

Nguyen Mai