Khanh Hoa seeks to boost supporting industry production

Major challenge

There are about 25 support industry enterprises in Khanh Hoa Province, but their capabilities remain limited. The total production value of the province’s support industries accounts for only 4.4 percent of its total industrial production value, and contributes about VND35 billion to the budget annually. The labor force accounts for about 9.5 percent of the provincial industrial workforce in major fields including textiles and garments, mechanics, the electrical industry, and electronics.

Leaders of the province’s Department of Industry and Trade said support industry enterprises are facing difficulties in capital, production sites and other resources, therefore they cannot meet increasing production demand, particularly given the growing digitization of production which requires a very high automation rate.

The Provincial People’s Committee has spent VND7.77 billion to help supporting industry enterprises acquire production machinery, equipment and technologies, including VND5.82 billion from the local budget and VND1.95 billion from the state budget.

The province also helped local support industry enterprises become suppliers for domestic and foreign customers, and sought foreign investment in support industries.

Textiles and garments are among prioritized fields of Khanh Hoa’s supporting industry plans

Four prioritized fields

In the development program, Khanh Hoa has set four major targets, including mechanical engineering; garment and footwear; electronics, electrical equipment and high-tech industry.

The province will promote the manufacture of machinery and equipment as a driving force for the general development of support industries. It also calls for departments and sectors to focus on technological transfers, innovation and efficient use of environmentally friendly materials.

In the field of garment and footwear, the province will strengthen capacity for existing production facilities, attract investment and technological innovation for the production of raw materials and completion of products in order to satisfy increasing demand inside and outside the province. It will also invest in the production of ancillary materials to create more added value, contributing to the restructuring of the sector with production priorities of fashionable leather shoes, sandals and high quality bags and wallets.

In the fields of electronics, electrical equipment and high-tech industry, although they are not yet dominant areas, the provincial leaders are also determined to draw proper investment, striving to make clear progress by 2025, establishing strong and high quality businesses in these fields.

According to the Khanh Hoa Department of Industry and Trade, from now to the end of the year, when the infrastructure for new industrial zones and industrial clusters is completed, the possibilities for investment attraction will be better and the support industry enterprises will have more development opportunities.