Hung Yen Province seeks investors for support industries

15:00 | 13/07/2021 Industry

(VEN) - The northern province of Hung Yen is seeking investors and stepping up construction of industrial parks and industrial clusters to improve the added value and competitiveness of its support industry enterprises in various fields, ranging for auto assembly to textiles. 

In order to promote the production of components and spare parts directly serving automobile production and assembly, Hung Yen Province has been attracting electrical engineering and mechatronic projects to participate in the production chain serving the automobile industry. The province has 193 supporting industry projects for its auto industry, including 20 electronics projects and 18 mechanical engineering projects.

hung yen province seeks investors for support industries
Hung Yen Province seeks to attract supporting industry development projects

Typical enterprises supporting the automobile manufacturing and assembling industry include Sumiden Vietnam Automotive Wire Co., Ltd., which produces electric cables with a capacity of nearly 100,000 tonnes a year; Hamaden Vietnam Co., Ltd, manufactures auto parts and components with a capacity of over 6,000 tonnes of products a year; Kosaka Vietnam Co., Ltd, manufactures engine shafts for industrial trucks with a capacity of 49,000 products a year. Most suppliers of electronic products for the industry are from Japan, the Republic of Korea and Chinese Taipei.

Domestic investment in fields of electronics and informatics is modest. The product structure is also unbalanced, with investment focused on household electronic products rather than specialized electronic products to replace outdated technology.

Garment and textile

Today, as Vietnam participates more actively in free trade agreements, domestic enterprises in general and Hung Yen Province’s enterprises in particular have ample opportunities to boost garment and textile exports. This will make the textile and garment industry account for a larger proportion of the province’s industrial sector with higher production value and export turnover. However, the marketing capacity of many businesses remains restricted, most businesses have not developed their brands effectively, and their business deals with foreign partners often involve many intermediaries.

Nguyen Xuan Duong, Chair of the Hung Yen Provincial Business Association, said that in fact, most textile enterprises in Hung Yen mainly produce processed goods for foreign enterprises. Many enterprises have not yet signed direct export contracts, instead going through other leading exporters. Therefore, despite the large export value of textiles and garments, the real added value remains low.

Meanwhile, Director of Hung Yen’s Department of Industry and Trade Nguyen Van Tho said the department has been advising the province on how to find investors for supporting industry development projects. The province continues to complete adjustments and supplements to the industrial development planning to adapt it to government regulations and conditions of the locality.

Trang Anh