Hanoi key industrial products only open small doors

12:19 | 29/10/2017 Industry

(VEN) - A development program implemented by Hanoi for the past decade of its key industrial products has yielded only modest achievements. The capital is seeking to improve the program’s efficiency in accordance with new development trends. 

hanoi key industrial products only open small doors
The influence of the key industrial product development program on the business community remains poor

Achievements below expectations

According to a report by the Hanoi Department of Industry and Trade, the capital city has recognized 59 products of 46 enterprises as key industrial products. Most of the products have a solid niche in the domestic market, can provide import substitutes and have been exported to discerning markets. Many of the 46 enterprises have been involved in support industry chains for large Japanese companies.

However, several problems have emerged. The program targeted average annual growth 5-10 percent higher than the city industrial sector’s average, key industrial product value accounting for 30-35 percent of the city industrial sector’s production value, and export revenues representing 10-15 percent of the city’s export value in 2015. However, producers of the 59 key industrial products have so far accounted for only six and 4.5 percent of the city’s industrial production value and export revenue.

The program’s influence on the business community remains poor. The performance of key industrial products has been verified mainly based on revenue and production output criteria. Another problem stems from the rates of land lease in Hanoi’s industrial zones, which are 1.5-2 times those in the city’s neighboring provinces, leading some key industrial product manufacturers in Hanoi to move out of the city to other provinces.

Looking ahead

Experts say that from 2016-2020, the program should choose viable key products, including those of foreign-invested and other privately owned enterprises, for sustainable development. The state should provide assistance for the program’s participants to renovate technology, while enterprises should take the initiative in improving the program’s efficiency.

Le Hong Thang, director of the Hanoi Department of Industry and Trade, said the Hanoi People’s Committee has asked relevant organizations to review and suggest solutions to develop key industrial products. This would include assisting companies in branding, management, technology transfer, scientific research, human resources training, trade promotion, and continued administrative reform in all sectors, especially tax and customs, to improve the competitiveness of key industrial product manufacturers.

Hanoi would like to see its key industrial products accounting for 40 to 50 percent of the city industrial sector’s production value and export revenue by 2020.

Nguyen Hanh