Developing support industries in central Vietnam discussed

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VOV News English - 51 month(s) ago 7 readings

Developing support industries in central Vietnam discussed

The Ministry of Industry and Trade held a conference in the central city of Quang Ngai on November 3 to discuss the development of support industries in central Vietnam. At the conference, representatives of the ministry highlighted the importance of support industries for manufacturing industries in the key economic zone of the central region. They stressed the urgent need to attract foreign investment for production of spare parts in the next 10 years. Le Van Dung, Vice Head of the Management Board of the Dung Quat Economic Zone, said such development should take into account the interests of support businesses, not only industrial enterprises. Mr Dung also pointed out hindrances to the development of support industries, which arise from the small scale of the Vietnamese market. He quoted the fact that Japan has a local content of up to 80 percent and a system of 2,000 factories; the corresponding figures for Thailand are 50 percent and 500 plants respectively. He expressed pessimism about Vietnam’s target of attain a 40 percent local content. In reality, some support industries have grown spontaneously in some central localities. For instance, when the Dung Quat oil refinery plant was put into operation, some factories were opened to support the oil refinery industry such as a plant that produces plastics and one that produces packaging. In Danang, some companies were also established to support the automobile assembly industry, including the Danang Rubber Joint Stock Company, which specializes in manufacturing tyres and tubes. However, these factories are still small scale and need a unified orientation for development. Five provinces in the key economic zone of Central Vietnam proposed the Ministry of Industry and Trade and the Government work out a strategy and orientation for developing support industries in the region that is suitable for the region’s potential and advantages.

At the conference, representatives of the ministry highlighted the importance of support industries for manufacturing industries in the key economic zone of the central region. They stressed the urgent need to attract foreign investment for production of spare parts in the next 10 years.

Le Van Dung, Vice Head of the Management Board of the Dung Quat Economic Zone, said such development should take into account the interests of support businesses, not only industrial enterprises.

Mr Dung also pointed out hindrances to the development of support industries, which arise from the small scale of the Vietnamese market. He quoted the fact that Japan has a local content of up to 80 percent and a system of 2,000 factories; the corresponding figures for Thailand are 50 percent and 500 plants respectively. He expressed pessimism about Vietnam’s target of attain a 40 percent local content.

In reality, some support industries have grown spontaneously in some central localities. For instance, when the Dung Quat oil refinery plant was put into operation, some factories were opened to support the oil refinery industry such as a plant that produces plastics and one that produces packaging. In Danang, some companies were also established to support the automobile assembly industry, including the Danang Rubber Joint Stock Company, which specializes in manufacturing tyres and tubes.

However, these factories are still small scale and need a unified orientation for development.

Five provinces in the key economic zone of Central Vietnam proposed the Ministry of Industry and Trade and the Government work out a strategy and orientation for developing support industries in the region that is suitable for the region’s potential and advantages.

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