Khanh Hoa Province boosts support industries

10:00 | 11/08/2021 Industry

(VEN) - The southern central province of Khanh Hoa plans to gradually expand standard support industry production and participate in the global value chain.

khanh hoa province boosts support industries

Most support industry enterprises in Khanh Hoa Province are small and medium-sized

Low starting point

According to the Khanh Hoa Province Department of Industry and Trade, the provincial support industry sector’s development remains incommensurate with its potential. There are 25 support industry enterprises in Khanh Hoa, accounting for only 4.4 percent of the province’s industrial production value.

Most support industry enterprises in Khanh Hoa are small and medium in size, capital, technological innovation and improvement capability. There is only one support industry company serving the provincial textile and garment industry. The leather and footwear sector also has only one support industry enterprise – the Khanh Viet Corporation producing products from ostrich and crocodile skin (the factory refines 40,000 ostrich skins and 10,000 crocodile skins annually).

Most support industry enterprises serving the provincial shipbuilding industry are foreign-invested companies. The shipbuilding industry has a low local content, mainly making products according to the order of foreign partners and importing most of the materials it needs.

The provincial machinery manufacturing industry is developing slowly, while many mechanical enterprises in the province are still using outdated technology and equipment, churning out products of poor quality and diversity.

Khanh Hoa is home to four electronics, refrigeration, information technology and telecommunications enterprises, but all are small scale and their annual contribution to the province's industrial sector is declining.

Faster and sustainable development

The provincial people's committee has promulgated a program to boost support industries as a driving force for rapid and sustainable development of key industries, add value to provincial industrial products, increase competitiveness and dynamism of province-based enterprises and attract investors. Under the program, Khanh Hoa will enable enterprises to access long-term preferential loans worth a total of VND7.77 billion, helping them procure machinery, equipment and technology, including VND5.82 billion from the provincial coffer and VND1.95 billion from the government’s support industry development program.

The provincial department of industry and trade proposed that the provincial people's committee allow the establishment of a technical assistance center for industry development that would provide guidelines for enterprises in implementing support industry development policies.

Khanh Hoa Province prioritizes development of support industries in the mechanical engineering, garment and textile, leather and footwear, and electronics, electrical equipment and high-tech industry sectors.

Lan Anh