15:11 | 13/05/2015 Industry
(VEN) - Ho Chi Minh City is focusing on developing engineering, electronics and information technology (IT), chemical, rubber and plastic, and food processing industries to transform its industrial economic structure.
Rubber products, including tires and inner tubes, and plastic products made in Ho Chi Minh City meet domestic and export demands
Going the right way
Over the last five years of economic restructuring policy implementation, the industries have attracted more than 24,345 newly established enterprises, accounting for 45.5 percent of all newly established businesses in the city during the same period. Although the growth of these four key sectors in the city decreased from 9.1 percent in 2011 to 7.7 percent in 2014, their contribution to the city’s gross domestic product (GDP) increased to almost 60 percent in 2014, up from 58.8 percent in 2011.
Ho Chi Minh City Institute for Development Studies (HIDS) Deputy Director, Dr. Tran Anh Tuan said that the city’s policy for industrial restructuring was implemented according to the right way and had achieved encouraging results.
In 2014, the engineering industry experienced a growth of 16.6 percent and accounted for 17.5 percent of the city industrial sector’s production value. Engineering enterprises in the city applied many advanced technologies and equipment to manufacture good quality machinery that is 50-70 percent cheaper than imported products of the same kind, for use in the fields of food processing, milling and pharmaceutical production.
The chemical, plastic and rubber industries received greater investment and improved its environmental protection. It accounted for more than 19 percent of the city industrial sector’s production value. Rubber products, including tires and inner tubes, and plastic products met domestic and export demands. New modern, automated production lines now produce liquid detergents and shampoos, lotions and fabric softener by no means inferior to those made in Thailand and Malaysia.
The food processing and beverage industry has gradually developed and applied new technology to produce high quality and higher added value products. It accounted for about 16.3 percent of the city industrial sector’s production value. Vietnamese brands, including Vinamilk, Kinh Do, Pham Nguyen, Hanco, Bia Saigon, Vocarimex, Tuong An, Vissan, Ba Huan and Huynh Gia Huynh De, have carved a major niche on the domestic market.
Accounting for approximately four percent of the city industrial sector’s production value, the electronics and IT industry attracted many foreign-invested semi-conducting, microchip and electronic circuit projects including those of Intel and Nidec.
More incentives needed
According to Ho Chi Minh City Department of Industry and Trade Director Le Van Khoa, development of the four key industries will promote industrial restructuring towards shifting from fabrication to production and deeper participation in global value chains by developing policies to encourage all economic sectors to develop high-tech industries, manufacture exports, and develop support and manufacturing industries. The department will work with relevant authorities and organizations to adjust the plan for industrial zones, export processing zones and high-tech zones in the city to attract investment projects with a high science and technology content to the city.
The city should ensure that domestic businesses receive transferred technology. It will promote the training of skilled employees to satisfy new technological demands, aimed at increasing productivity and creating competitive products. The city will have solutions to assist businesses surmount difficulties related to administrative and law formalities, capital and technology.
By Thanh Thanh