09:43 | 04/06/2019 Industry
(VEN) - The Red River Delta province of Hai Duong considers support industry development as a key to becoming an important link in global supply chains of multinational corporations, while meeting domestic production needs.
Pham Thanh Hai, director of the Hai Duong Department of Industry and Trade, said local industrial production has expanded. Some key industries such as engineering, electronics, informatics, garment and textile, footwear, and automobile still focus on outsourcing and assembly. Raw materials and components for production are mainly imported, while finished products have low added value and weak competitiveness. Therefore, promoting the development of support industries is an urgent requirement, with an important influence on the process of industrialization, modernization, and international economic integration of Hai Duong Province.
Hai said the province has advantages in investment attraction in industrial production thanks to its favorable location 60km east of Hanoi and in the center of the northern key economic region. It is also a part of the northern key economic triangle connected to other regions with major traffic routes like National Highways 5 and 18. In addition, many large corporations operate in neighboring provinces, such as Samsung and Microsoft.
Hai Duong Province’s labor force is assessed as abundant, hardworking and skillful, lending itself to training. Some key industries in the locality have attracted major investment, facilitating development of support industries.
Local support industries have formed in three fields - engineering, electricity-electronics, garment and textile. Although output has not met demand, it has contributed to improving local content.
According to Pham Thanh Hai, the development of support industries will contribute to providing spare parts and components for key local industries, such as engineering, garment and textile, leather and footwear, and automobile in order to serve domestic production needs and exports. Therefore, the province encourages all economic sectors to invest in support industries, especially the private sector and foreign investors. Foreign investors with strong financial resources will provide technologies and open up new markets for exports, while helping domestic businesses restructure production and change product structure.
To promote investment attraction, Hai Duong Province has focused on improving its business and investment environment and provincial competitiveness index (PCI), simplifying administrative procedures, and strengthening training of human resources to enhance the quality of cadres and civil servants.
In particular, the Hai Duong People’s Committee has issued a development plan for support industries by 2020, with a vision to 2030. Accordingly, local support industries will be able to engage in production and supply of components and spare parts for key industries in the locality and neighboring provinces by 2020, and will become an important link in global supply chains of multinational corporations by 2030.
To date, domestic and foreign investors have poured more than VND1.762 trillion and US$1.566 billion into over 130 support industry projects in Hai Duong Province.
According to a development plan for support industries by 2020, with a vision to 2030, Hai Duong Province seeks to
achieve VND39.202 trillion and VND132.317 trillion in the production value of support industries by 2020 and 2030,
respectively, with an average growth rate of 12.9 percent during the 2021-2030 period.