11:20 | 24/03/2017 Local Industry
(VEN) - Hosting a number of big-name companies like Honda, Toyota and Yamaha, Vinh Phuc Province has become a destination for global producers of automobiles and motorbikes. With that in mind, the province has put in place a full array of mechanisms and policies in order to boost support industries.
According to the Vinh Phuc Province Department of Planning and Investment, a number of facilities are making spare parts, accessories and materials for automobile producers and assemblers. These include mirrors, glass, chairs, radios, electric wires, inner tires, tires, batteries and heat-resistant sponge.
However, Vietnamese engineering enterprises still face shortcomings in terms of processing technology, sustainable links between producers, quality of human resources, and adequate infrastructure, such as roads and power and water supplies. As a result, they fall short of the demand for support industries, in particular, and the industrial sector, in general.
To address these shortcomings, the Vinh Phuc Province People’s Committee adopted an ambitious plan on July 5, 2016, encouraging the development of support industries in the province in the period from 2016-2020, with a vision to 2030, in an effort to tap potential and make the most of the province’s advantages.
The plan outlines major measures for the development of support industries, such as raising awareness among local authorities of the importance of support industries, offering incentives for their development, raising capital for sectorial development, promoting investment in the sector, strengthening links between businesses, developing export markets, and fostering science and technology for support industries.
In addition, the plan underlines the need to increase the quality of human resources, renew infrastructure, reform administration and facilitate investment through ground allocation and land clearance.
It also includes the development of support industry sub-sectors serving specific industries, such as automobile and motorbike production and assembly, engineering, electronics and information technology, textiles and garments, leather and footwear, and construction material production.
Specifically for the automobile and motorbike industry, the plan underscores the need to attract capital and new technology from multinational groups.
Regarding the engineering industry, the province will emphasize developing sub-sectors to meet the demand for production and assembly of agricultural and forestry machinery and equipment, construction, consumer goods production and more. Regarding electronics and information technology, the province will focus on software and production and assembly of IT devices such as computers, printers and computer accessories.
To cater to the demand of the textile-garment and leather-footwear industries, the province calls for capital for sewing materials like thread, cotton sheets and plastic buttons. Vinh Phuc expects its support industries to eventually be able to produce and provide the majority of accessories, spare parts and maintenance for industries in the province and neighboring provinces. These provincial support industries are also expected to become a part of the domestic and global production chain supplying and exporting high-value support products.