Mechanical Engineering Industry: Improving Capacity, Catching the Wave of Integration

10/12/2021

According to the Ministry of Science and Technology, a number of domestic mechanical engineering units are now capable of being general contractors for large projects worth billions of dollars, some products have reached similar quality standards to imported products, eligible for export to compete with foreign products.

Active localization

Through scientific and technological results, a number of research institutes, corporations, corporations, mechanical engineering enterprises have affirmed their brands and positions not only in the domestic market but also in the domestic market and in the world.

As proof of this, the Ministry of Science and Technology gives an example, the results of the project of building a new 120 m jack-up rig (Tam Dao 05), and basically mastering the design and fabrication of steel structures, Petroleum Rig Manufacturing Joint Stock Company (PVShipyard) has localized the drilling tower equipment cluster, the rig foot and the electrical panel system.

This is the premise towards semi-submersible rig products and Vietnamese-branded mobile jack-up rigs/rigs and models of development and application of design and manufacturing technology for mobile oil and gas rigs serving the development of marine economy and national security in the next period.

Or, the Institute of Mechanical Engineering (Ministry of Industry and Trade) has cooperated and associated with developed countries such as Japan and the Russian Federation to design, manufacture, test, install and operate a static dust filter electricity system. This system has quality equivalent to European standards, capable of participating in tenders to supply equipment for thermal power plant projects in Vietnam and export for Myanmar Metallurgical Plant Project.

The successful research and manufacture of electrostatic precipitators has increased the localization rate from 76% to 94% in volume and from 65.18% to 79.6% in value (including installation value), or from 50% to 64% in value (excluding value) .

In the field of mechanical engineering for the transport industry, a value chain has been formed for the production of components, details of supporting equipment, and assembling buses with up to 80 seats of high quality with a high ratio of up to 80 seats, localize up to 40% and expand the production of agricultural trucks, heavy trucks and special-purpose vehicles to meet the requirements of vehicle production with the same quality as other countries in the ASEAN region.
Specifically, through the support of the national science and technology project “Research, design and manufacture high-class sleeper bus with Vietnamese brand”, Truong Hai Automobile Joint Stock Company (Thaco ) has initially mastered the calculation, design and complete simulation of passenger car structure, thereby shortening the vehicle design time compared to before.

Another example is Hai Duong Pump Manufacturing Joint Stock Company, which has manufactured special pumps for the oil and gas, thermal power, chemical industries, large capacity pumps for mine drainage and flood control; mastering the manufacturing technology to be able to pump the flow rate up to 50,000 m3/h and the pump with the largest head up to 500 m; meet most of the pump needs of the economy, reaching the localization rate of 95 – 100%.

Sharing with the Vietnam Economic Reporter, Dr. Phan Dang Phong – Director of the Institute of Mechanical Engineering (Narime) – approved: Up to now, the Institute has been a reliable partner of many multinational corporations such as Honda, Toyota, Doosan… as well as domestic corporations such as EVN , TKV, VinGroup… Some products and solutions of the Institute have directly competed and won bids for large foreign companies that the Institute had previously participated in as extra contractors.

Mr. Dao Phan Long, Vice President, General Secretary of the Vietnam Association of Mechanical Enterprises said: Vietnam has formed a number of mechanical products, which are: Sub-sector of manufacturing steel structures and assembling machines. good participation in construction of public and agricultural works; shipbuilding sub-sector capable of building ocean-going ships of international standards; the sub-sector of manufacturing and assembling automobiles, motorcycles and bicycles has partly met domestic demand; The sub-sector of manufacturing movers and agricultural machines has manufactured a number of small-capacity internal combustion engines to make agricultural farming machines…

In recent years, with efforts to change production methods and management structures, research units and mechanical enterprises have fought increased the localization rate, producing many mechanical products that are complex, high value, high technology level. Some products have reached the standard, the quality is equivalent to foreign products. a number of Vietnamese mechanical enterprises have participated in a number of global mechanical supply chains…

The thrust for the mechanical industry before integration

The above examples show that the domestic mechanical industry has achieved remarkable results, contributing to the industrialization and modernization of the country. However, many experts believe that, in the current context of deep integration, domestic mechanical enterprises will have to compete fiercely with multinational corporations with strong potential in mechanical products. Accordingly, in order to promote the development of the mechanical engineering industry, it is necessary to create a developed market for the key mechanical engineering fields; tax incentives for enterprises using domestically produced machinery, increased import tax on foreign machinery.

According to Mr. By Phuoc Tong, Chairman of Ho Chi Minh City Association of Mechanical and Electrical Enterprises (HAMEE): The government needs to consider mechanical engineering as a fundamental industry, which plays a particularly important role in the development of Socio-economic. It is necessary to build a mechanical engineering industry that is competitive enough to rise up in the market mechanism and international economic integration, as well as to issue more appropriate policies to encourage and focus on advantageous product groups and in line with the global international integration .

Commenting that to develop, the mechanical industry urgently needs the “hand” of the State, Mr. Do Phuoc Tong said: The Government and businesses must form a block from an overall perspective to discuss necessary measures or activities to be properly implemented and implemented. In my opinion, many strong and synchronous solutions are needed, including: Developing raw materials for production. Print there. The Government should have an appropriate tax policy in the import of raw materials and supplies for mechanical production; calling for FDI to participate in the production of materials for the mechanical industry.

In addition, supporting businesses to borrow capital to invest in equipment, machinery, and factories (medium and long-term loans); It is necessary to plan, create conditions and have preferential regimes for enterprises in the supporting industry and mechanical engineering to enter industrial parks and industrial clusters at a reasonable cost so that mechanical enterprises can can develop; develop a mechanism to promote technology and technical transfer from FDI enterprises to Vietnamese enterprises; supporting businesses to participate in the national trade promotion program…

At the same time, the State should create favorable conditions and support domestic and foreign organizations and individuals to participate in the development of human resources in the mechanical industry; financial support for training to improve the technical qualifications of engineers and technicians of enterprises producing supporting industry products. In addition, it is necessary to enhance the role of industry associations to become the connection point between the parties: Connecting and linking businesses in the same industry; connection between schools, institutes and enterprises for training; Bridge between businesses and government agencies…

Also according to Mr. Do Phuoc Tong: Joining the global supply chain is a big goal, almost all businesses must aim for if they want to integrate and develop. Therefore, businesses and research units in the field of mechanical engineering need to be fully aware of the needs from the global market, understand customer needs such as: how much quantity, how products, value What are the additional services, the expected improvement… From there, the units will see their position as well as the limitations that need to be overcome to be able to meet the requirements of the global supply chain.

Source: Kinhtevn

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