08:40 | 30/09/2019 Industry
(VEN) - Vietnam’s mold precision engineering industry has reached an annual value of more than US$1 billion. With a yearly growth rate of 18 percent, the industry is attracting the interest of domestic and foreign investors.
According to Associate Prof. Dr. Nguyen Tan Tien from the Faculty of Mechanical Engineering, Ho Chi Minh City University of Technology, domestic enterprises account for 42 percent of the industry’s US$1-billion value, and foreign invested businesses represent the remainder.
Over the past 10 years, the mold precision engineering industry in Vietnam has grown quite rapidly along with increases in foreign direct investment (FDI) in the country. Big names such as Canon, Panasonic, Honda, and Piaggio in the country’s north and Muto, Taekwang Vina, Sonion, Nidec Group and Samsung in the south have brought the mold precision engineering development in Vietnam to high levels of digitization and automation.
Increased FDI contributed to the development of many domestic enterprises such as Duy Tan, Viedam, Mida, Sakura in the southern hub of Ho Chi Minh City and HTMP, TMT, An Phu Viet, Smart Vietnam, and An Phat Group in the north.
Vietnam’s mold industry now boasts well-known enterprises including Minh Nguyen, Duy Khanh, Lap Phuc, Duy Tan, Cat Thai, Minh Dat, and Phu Vinh, among others. Assoc. Prof. Dr. Nguyen Tan Tien said Vietnamese enterprises can now provide more than 70 percent of all mold industry processes including design, fabrication, heat treatment, surface treatment, assembly and testing.
Acting Head of the Saigon High-Tech Park (SHTP) Le Bich Loan said SHTP is home to enterprises providing molds not only for FDI enterprises but also for export. Makino, a leading machine tools and solutions provider from Japan, recently opened a Vietnam Technology Center in Ho Chi Minh City to strengthen customer care, providing opportunities to develop partnerships in the field of mold precision engineering and automation, and help domestic businesses and manufacturers keep up with the world industry’s development and better participate in the global supply chain.
Neo Eng Chong, CEO and President of Makino Asia said opening the Makino Vietnam Technology Center supports Makino’s strategy and its commitment to strengthening support for customers, both before and after sales and sharing its expertise in the precision engineering industry with turnkey solutions and technology knowledge transfer.
According to Le Bich Loan, countries with advanced industries, such as Japan and the Public of Korea, have formed a compound combination model to produce high-quality molds for different technology fields in order to maximize automated equipment capacity. SHPT will act a bridge connecting businesses with international organizations such as Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO), Japan Bank for International Cooperation (JBIC) and other organizations to seek cooperation and domestic and foreign investment opportunities in order to promote the mold precision engineering industry’s development.
Domestic enterprises are capable of making level 3 and 4 products, while still having to import level 1 and 2 products.