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New supporting industry center, waiting for a breakthrough in 2023

10/03/2023

(VNF) – The South Central region has become a new center for supporting industries, contributing to the industrial sector’s success in general, promoting exports, and creating many jobs for the people.

Resonance to develop together

Located in the center of the country, Da Nang is identified as the economic center of both the Central Region and the Central Highlands. Many technology projects have been invested here to take advantage of the infrastructure, human resources, and an attractive tourism market for domestic and foreign tourists. Taking advantage of this, Da Nang has attracted a number of supporting industry projects, but due to its high dependence on imported raw materials, materials, machinery, and equipment, the added value is low and the output is not much.

According to Le Thi Kim Phuong, director of the Da Nang Department of Industry and Commerce, there are currently more than 110 businesses in Da Nang. FDI businesses mostly create supporting industrial goods for export. In the 2021–2030 period, Da Nang aims to focus on developing supporting industry products, attracting a number of large companies and corporations to invest in Da Nang, transferring technology, using intermediate products to create spillover effects on the development of supporting industries, focusing on building and putting into operation the supporting industrial park of Da Nang Hi-tech Park, and attracting investment in this field.

Also shaping the development of supporting industries from an early age, Quang Ngai province has a project in each phase and focuses on attracting investment in Dung Quat EZ, where the “headquarters” of the refining and petrochemical industry is located; mechanical engineering, steel rolling industry. Not only that, but this place also has a new construction and repair industry for large ships, with the potential for developing the gas-electric industry…

However, so far, the expectations of attracting investment and developing supporting industries are still limited. The number of manufacturers, suppliers of materials, and supporting products is not very large.

mainly processing and packaging of all kinds, but the quality is not uniform, not meeting the development needs of the key industries of Quang Ngai province.

Along the “running track” of developing supporting industries, Binh Dinh and Thua Thien-Hue provinces have begun early planning and investing in large industrial zones to attract investment in this type of enterprise. However, up until now, in these two localities compared to other localities, the proportion of supporting industries is still low. Entering a new stage of development, Binh Dinh province is calling for German and Korean businesses to invest in supporting industries:

Production of electronic components, supporting industries for the auto industry, seaport infrastructure, industrial park infrastructure, energy, tourism, hi-tech agriculture, fisheries, trade in services, environmental protection… at the same time supporting provincial businesses to participate at a higher level in supply and value chains… Thereby, it contributes to the successful implementation of the goal of making Binh Dinh a developed province in the leading group of the central region. Meanwhile, Thua Thien-Hue identified a call to attract investment in supporting industries for the textile and garment industry, construction materials, and the development of seaport logistics.

Imprint of Quang Nam

Among the localities in the Central region developing supporting industries, Quang Nam emerges as a dynamic and efficient model thanks to the Chu Lai-Truong Hai automobile assembly and production complex. Mr. Nguyen Hong Quang, vice chairman of the Quang Nam Provincial People’s Committee, said that the supporting industry in the area has attracted a number of new investment projects with large investment capital.

especially foreign direct investment in the fields of manufacturing spare parts and auxiliary parts for automobile production and assembly; raw materials and auxiliary materials; chemicals for garment production; and electronic components for the electrical and electronic industry.

Regarding the supporting industry of the textile and garment industry, Quang Nam currently has about 25 projects operating in the fields of supporting industries for the textile and garment industry, with a total registered investment capital of more than 9,700 billion VND.

creating jobs for more than 13,000 employees, mainly through FDI enterprises.

In the field of supporting industries for the automobile manufacturing and assembly industry, Quang Nam has about 26 projects operating in industrial parks with a total registered investment capital of more than 4,800 billion VND, creating jobs for more than 5,000 workers. The supporting industry of the automobile manufacturing and assembly industry, with the strength of THACO Group, is a bright spot, with 7 auto assembly plants, including 2 factories with the largest scale in Southeast Asia. Along with automobile assembly plants, THACO has invested in building 12 factories producing components and spare parts on an area of 93 hectares with a total investment capital of 1,690 billion VND.

In addition, in recent years, Quang Nam has also attracted more FDI enterprises to invest in this field, such as some Korean factories.

Auto parts manufacturing factories such as CTR Vina with an investment capital of 27 million USD; plastic extrusion auto auxiliary factory with an investment capital of 10.3 million USD; Airbag fabric factory of Hyosung Quang Nam Co., Ltd. with an investment capital of 35 million USD; factory manufacturing electronic vacuum pump brake motor of cars with investment capital of 5 million USD…

Mr. Le Tri Thanh, Chairman of the Quang Nam Provincial People’s Committee, said that the province has completed the final steps to submit the planning project to the Prime Minister for approval and that it is expected in the first quarter of 2023.

The provincial planning project is approved as a basis for implementation. In this planning project, the development of supporting industries will be promoted to serve key industries with the strengths of the province and spread to the whole central key economic region. Including support industries for automobile manufacturing and assembly, mechanical engineering, machinery, and equipment for the production of industries such as textiles, leather, footwear, chemicals, high-tech agriculture, etc., and meeting input material requirements, increases the domestic share in industrial products.

Source: Vietnam Finance

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