Khanh Hoa Province
06:00 | 10/04/2020 Industry
(VEN)- The People’s Committee of Khanh Hoa Province has launched a five-year plan to boost support industries for rapid and sustainable development of key industries and their participation in global value chains.
Difficulties in mobilizing capital
According to the Khanh Hoa Department of Industry and Trade, about 25 support industry enterprises operate in four major fields in the southeastern coastal province, including garments and textiles, mechanics, electrical industry, and electronics, but their capabilities remain limited. The total production value of Khanh Hoa’s support industries accounts for only 4.4 percent of the province’s total industrial production value, contributing about VND35 billion to the provincial budget annually. The labor force accounts for about 9.5 percent of the provincial industrial workforce.
Leaders of the province’s Department of Industry and Trade said local support industry enterprises are facing difficulties in mobilizing capital and accessing production sites and resources and have therefore failed to meet growing production demand, especially the high automation rate of the current digital era.
The Support Industry Development Program has identified support industry as both a goal and a motivating force for rapid and sustainable development of key industries, prioritizing support industry development in order to increase added value, competitiveness and dynamism of enterprises in the province.
Accordingly, the provincial people’s committee will use VND7.77 billion (including VND5.82 billion from the local budget and VND1.95 billion from the state budget) to help support industry enterprises procure machines, equipment and technologies for production. The local support industry budgets are integrated with capital resources from other programs, such as investment promotion, science technology development and industry and trade promotion. The province will also help local support industry enterprises become suppliers for domestic and foreign customers, seek foreign investment in support industries, train human resources to meet production demand, support research and development, technological transfer and innovation for the production of accessories, spare parts and materials. More importantly, it will help support industry enterprises access long-term loans at low interest rates to procure machines, equipment and technologies for production.
Determining prioritized fields
In its development program, the provincial people’s committee has outlined four major targets including mechanical engineering; garment and footwear; electronics, electrical equipment and the high-tech industry.
In the field of mechanical engineering, it will promote the manufacture of machinery and equipment as a driving force for the development of support industries. Related departments and sectors need to pay proper attention to technological transfers, innovation and efficient use of environment-friendly materials.
Regarding garment and footwear, the province will strengthen the capacity of existing production facilities, attract investment, and acquire innovative technologies for the production of raw materials and completion of products in order to satisfy the increasing demand inside and outside the province. It will also invest in the production of ancillary materials to create more added value, contributing to the restructuring of the sector. It plans to prioritize production of fashionable leather shoes and sandals and high quality bags and wallets.
Although electronics, electrical equipment and high-tech industries are not yet dominant areas, the province’s leaders are also determined to have proper investment in these fields, striving to make clear progress by 2025. Vietnam is expected to spend nearly VND8 billion to support the above-mentioned industries, with priorities given to connecting local enterprises with other domestic and foreign businesses and strengthening management to meet the requirements of the global production network.
Khanh Hoa Department of Industry and Trade:
The Khanh Hoa Support Industry Development Program until 2025 will provide a big push for the development of support industries, which will also promote the development of other industries and create advantages in investment attraction.