15:00 | 26/07/2022 Industry
(VEN) - The central province of Quang Nam is implementing solutions to develop support industries on a large scale, gradually forming the largest industrial park (IP) for manufacturing automobile components and spare parts in Vietnam.
Forming a value chain
Quang Nam Province is a pioneer in building a production linkage model in which large corporations link with small businesses to create a production chain with high added value, contributing to local development and participating in global production value chains.
One typical example is Thaco Chu Lai IP, which is considered the largest auto industry center in the country and among the top in the ASEAN region. The IP covers an area of more than 1,280 hectares, with a total investment of US$3.5 billion, housing 35 companies and employing more than 60,000 people. In 2021, Thaco’s total consolidated revenue reached more than VND60.7 trillion, contributing more than VND20.5 trillion to the state budget.
|A corner of the Thaco Chu Lai mechanical complex|
Thaco has developed mechanical engineering and supporting industry through the Supporting Industries and Mechanics Corporation, the biggest mechanical engineering facility in Vietnam.
Truong Hai Group Corporation (Thaco) Chair Tran Ba Duong said Thaco is working with Quang Nam Province to gradually build an ecosystem of mechanical and support industries through cooperation, technology transfers, and production processes for enterprises in Quang Nam and other provinces.
Strong budget contribution
The strong growth of the Chu Lai Open Economic Zone reflects its attraction for domestic and foreign investors, contributing more than two thirds of the provincial budget revenue annually.
Quang Nam has called on businesses across the country to join Thaco Chu Lai's production value chain, especially in fields of mechanical engineering, manufacturing, processing and assembling cars for domestic and export markets.
It is also investing in strategic infrastructure, especially road, air and sea transport systems.
Le Tri Thanh, Chair of Quang Nam Provincial People’s Committee, said that increasing localization rates of auto lines and other mechanical products is vital, with large corporations serving as the nucleus of links with small and medium enterprises to develop support industries. Thanh expressed his hope that this model started in Quang Nam would serve as a pioneer to be followed in other parts of Vietnam.
According to the plan, by 2030, Quang Nam will become a well-developed province with an expected average annual GRDP growth of 9.3 percent.