Hanoi's fair on the supporting industry in 2023. The capital city opens such fairs to attract investment and trade activities for its supporting industry. (Photo: hanoi.gov.vn) Nguyen Dinh Thang, Deputy Director of the Hanoi Department ofIndustry and Trade, said the city had determined that the development of thesupporting industry would be an important solution to have sustainable economicdevelopment, increase the ability to attract foreign direct investment, promotetechnology transfer, and boost the development of small and medium-sizedenterprises.
This would also be a motivation for domestic enterprises toparticipate further in the supply chain of foreign invested companies and theglobal value chain of multinational groups.
Among them, the production of components would be the key field toprovide supporting industrial products for most key manufacturing industries,such as automobile and motorbike manufacturing, mechanical engineering,electricity and electronics.
In particular, enterprises in Vietnam, including Hanoi, had alsotaken all business opportunities, promoted digital transformation and linkedwith foreign partners to participate in the global supply chain.
Nam Phuong Company specialising in production of electricequipment located in Song Cung Industrial Park in Dan Phuong district of Hanoi,has cooperated with Intec GmbH, a group from Germany, to produce electricalcabinets and elevator controllers using leading technology from Intec,according to the company's representative.
With this cooperation, the company has produced electricalcabinets and elevator controller products with quality recognised by Intec andmuch lower prices.
"This is a high-quality new technology elevator controllerfor all types of elevators, opening up opportunities for Vietnamese customersto use a modern, smart and safe elevator control system," therepresentative said.
"The company's goal is to become a leading enterprise insupplying controllers on the domestic market, and also to export to othermarkets such as Malaysia and Singapore."
Tran Thi Phuong Lan, Acting Director of the Hanoi Department ofIndustry and Trade, said according to the orientation of developing supportingindustries for the period 2021-2025 and a vision to 2030, Hanoi would deploysolutions to promote development of the supporting industry. That would help Hanoibecome a city with a modern industrial sector, high technology and greenindustry.
The city enhanced promotion activities, online trade connection,and the application of virtual reality technology. It also had support forsupporting industry enterprises to carry out advanced and modern technologytransfer; and hire foreign experts for training human resources.
Hanoi built a website about its supporting industry to provideinformation and data relating to the supporting industry.
In the Hanoi Supporting Industry Development Programme until 2024,Hanoi set a goal for 2024 to have about 1,000 enterprises operating in thesupporting industry, one year before the schedule. About 35-40% of supportingindustry enterprises had production systems and products meeting internationalstandards to supply to the global production network of multinational groups inVietnam.
To achieve the set goals, the city would promote connection andsupport for supporting industry enterprises to become suppliers for domesticand foreign enterprises; and enhance attraction of foreign investment into thisindustry. In addition, the city would hire experts to help the supporting industryenterprises in Hanoi deploy smart factory models.
The city would organise two exhibitions on supporting industry in 2024with the participation of foreign enterprises, including Japan, South Korea,China and Thailand. Those would create favourable conditions for the enterprises toseek opportunities and connect commercial transactions in manufacturing andsupplying components.
At the same time, it would support them in the activities of research anddevelopment, and technology transfer and innovation in trial production ofcomponents, spare parts, raw materials and materials.
Up to now, Hanoi has more than 900 supporting industryenterprises, according to the department. Of which, about 320 enterprises haveproduction systems and products meeting international standards, and enteringthe production and supply networks of multinational corporations.
However, the supporting industry's products of Vietnam as well as Hanoihave medium and low technology. The localisation rate of those products is stilllow. The value of components imported into Vietnam for assembly andmanufacturing of export goods annually reaches tens of billions of US dollars.Especially, the import value of components in the electronics and automobileindustries stands at about $35-50 billion.
Besides that, according to the Hanoi Supporting IndustriesBusiness Association (HANSIBA), there are many difficulties in investment anddevelopment of the supporting industries in Hanoi due to increasing cost ofproduction, labour and some other services./.
VNA
