In 2023, Hanoi strives to have about 950 enterprises operating in the fields of supporting industries. Which, there are about 300-350 enterprises with production systems and products of international standards, and sufficient supply capacity to participate in the global production network of multinational corporations in Vietnam…

In 2023, Hanoi sets a target that the industrial production value of the supporting industry will account for about 16-17% of the industrial production value of the processing and manufacturing industry.

According to the Hanoi Department of Industry and Trade, by 2022, the city will have about 900 enterprises engaged in supporting industries, including early 300 enterprises that have products that meet international standards, contributing to increasing the contribution of the processing and manufacturing industry in the economic structure as well as participating in the global value chain.

ENTERPRISES LACK RESOURCES AND HAVE POLICY ENTANGLEMENTS

However, the supporting industry still shows many shortcomings. Specifically, domestic supporting industry products are simple, with medium and low technology content, and have a small value in the product value structure. Currently, the localization rate of the automobile industry is about 5 – 20%; electronics 5 – 10%; footwear, textile 30%; mechanical engineering, the localization rate is about 15-20%.

The localization rate is low, so the annual volume of components imported to Vietnam for assembly, manufacturing, and production for export is up to tens of billions of USD. Particularly, imported components in the electronics and automobile industries are about 35-50 billion USD.

Moreover, supporting industry enterprises lack the resources to innovate. The ability to supply components and spare parts with high technology content and complex techniques has not yet met the requirements to participate deeply in the global production chain.

According to a report of the General Statistics Office, over 30% of supporting industry enterprises of the country, in general, are still using manual control devices completely, over 50% using semi-automatic equipment, only more than 10% of enterprises use automation equipment and less than 10% of enterprises use robots in production lines.

In terms of the value chain, only about 19% of textile and garment, leather, and footwear enterprises and 33% of electronic enterprises carry out the design stage in the production process. About 20% of enterprises have ISO 9000 certification (quality management), 9% of enterprises have ISO 14000 certification (environmental management), and more than 20% of enterprises have implemented 5S enterprise. The number of enterprises applying tools such as Lean, 6 sigmas, TQM, and TPM is only about 1-2%.

Besides, according to the Hanoi Supporting Industry Business Association (HANSIBA), it is more difficult to invest, build and develop supporting industries in Hanoi city due to the high cost of renting production space, labor, and a number of other services.

Although there is a relatively complete system of preferential policies, it seems that businesses have not yet been able to access them because these policies still have many obstacles in the implementation stage. Some preferential regulations are still general, making localities confused in deploying to businesses.

Mechanisms and policies to support the development of local supporting industries have not been completed, especially credit policies… The scale of enterprises is still small, the technology is not advanced, and the ability to research, design and develop products is still limited…

SUPPORTING BUSINESSES TO MEET GLOBAL PRODUCTION CHAIN REQUIREMENTS

To promote the development of supporting industries in Hanoi, the Hanoi People’s Committee has issued the Program to develop supporting industries in Hanoi in 2023. In which, striving by 2023, Hanoi has about 950 enterprises operating in the fields of supporting industries.

There are about 300-350 enterprises with production systems and products of international standards, and sufficient supply capacity to participate in the global production network of multinational corporations in Vietnam.

In particular, the industrial production value of the supporting industry accounts for about 16-17% of the industrial production value of the processing and manufacturing industry in Hanoi. The industrial development index of the supporting industry sector increased by over 11-12% (up about 1% compared to 2022).

The program emphasized, supporting enterprises in Hanoi will become product suppliers for domestic and foreign customers, thereby attracting foreign investment in the field of supporting industries.

To achieve this goal in 2023, Hanoi will hire consultants to provide technical assistance to supporting industry enterprises in industries, fields, and production items on the list of priority products for development. Support enterprises to apply management systems to meet the requirements of global production chains in corporate governance and production management.

At the same time, organize a specialized fair on supporting industries in 2023 with a scale of about 200-300 booths to attract international supporting industry enterprises from Japan, Taiwan, Hong Kong – China, and Thailand… participate in helping businesses improve their supply capacity for domestic enterprises and the global production and supply chain in the manufacturing industry.

Besides, supporting industry enterprises in the city to receive advanced and modern technology transfer; purchase copyrights, patents, software (including digital conversion); research, development, application of technology transfer and innovation in trial production of components, spare parts, materials…

Source VNEconomy

MTA Hanoi is an annual trade event for the manufacturing industry in Northern Vietnam in the fields of precision mechanics, machine tools, and metalworking. With a diverse product portfolio and hundreds of leading technology products and machine tool equipment in the world, MTA Hanoi 2023 will bring the most modern and diverse solutions, machines, and production technologies in the world. for the domestic manufacturing industry. Exhibition date: 11 -13 October 2023 Opening hours: 9:00 – 17:00 daily Venue: International Center for Exhibition (I.C.E), Hoan Kiem, Hanoi, Vietnam Contact information: Tel: +84 28 3622 2588 Email: [email protected] Website: www.mtahanoi.com Facebook: facebook.com/MTAHanoi