Engineering sector lagging behind

10:25 | 13/06/2017 Industry

(VEN) - Given international economic integration, the engineering sector needs to make stronger efforts to promote its development.

Weak internal force

According to the Ministry of Industry and Trade’s Heavy Industry Department, engineering businesses have faced many challenges and difficulties due to a low starting point, backward technologies, weak human resources and limited investment.

The Ministry of Industry and Trade’s Industrial Policy and Strategy Institute shows that the country currently has 14,800 engineering businesses. However, only 12 businesses have more than 5,000 workers and 116 have over 1,000 employees. In addition, nearly 100 businesses have a capital scale of more than VND500 billion.

Due to low competitiveness of the whole sector, foreign suppliers have occupied a majority share of the market.
Le Van Tuan, general director of the Vietnam Machine Installation Corporation (Lilama), said given international economic integration, engineering businesses will face many challenges and difficulties due to market requirements in terms of stable quality, timely delivery and reasonable prices. However many engineering businesses have failed to meet these conditions.

“Manufacturing and exporting engineering equipment have been implemented for many years after Vietnam joined a number of bilateral and multilateral free trade agreements. However, orders have gradually come down due to a number of reasons, such as low product quality and weak thinking of some engineering businesses,” Le Van Tuan said.

More and more efforts

Le Van Khuong, chairman of the Construction Machinery Corporation (COMA), said engineering businesses must join the global production chain as they can make outsourced products for foreigners, then study and master technologies.

Integration provides opportunities for Vietnamese engineering businesses to acquire advanced technologies in the world.

Nguyen Trong Nam, director of the Hai Duong Pump Manufacturing Joint Stock Company, said the company has exported its products to ASEAN markets, Japan and Europe for many years. To be able to export pumps to those countries, the company has taken a very long time to gain the trust of its partners.

Nguyen Van Thu, chairman of the Vietnam Association of Mechanical Industry, said engineering businesses need to do their best to participate in the global production chain and seek orders.

The state should have a comprehensive policy and specific planning to encourage heavy investment in the engineering

sector. In addition, a number of key engineering products that are able to compete in the international arena and meet market

demand must be manufactured.

Viet Anh