The opportunities for Hung Yen mechanical industry

With about 3.6 thousand enterprises and mechanical manufacturing facilities in operation, creating jobs for over 48 thousand workers, the province's mechanical industry has gradually mastered and increased the localization rate, created momentum to beef up the development of other industries and economies.

Currently, the product structure of the province's mechanical industry is increasingly diverse, such as: Steel rolling (as raw material), steel casting, alloy casting, engine manufacturing, industrial machine parts casting... In which, focusing on 3 main sub-sectors, including: motorbikes and motorbike spare parts; household mechanics and tools; automobiles and auto parts... Enterprises producing mechanical components have quite good capacity in such fields as: Molds of all kinds, mechanical components, electric cables, plastic components, technical rubber...

In addition, the demand of the supporting industry market is very large, so many enterprises have boldly invested to improve production capacity, focusing on developing quality product lines, serving foreign direct investment (FDI) enterprises, aiming at exporting mechanical products. Typical enterprises are: Vietnam Automobile and Motorcycle Parts Manufacturing Company Limited, Ding Hong Precision Mechanical Company Limited, TOMOCO Vietnam Mold Joint Stock Company... In which, Vietnam Auto Parts Co., Ltd (VAP) is the largest mechanical enterprise in the province, supplying spare parts to Honda Group and creating jobs for over 1,500 workers.

Production at Thuan Dat Production, Trade and Investment Joint Stock Company (An Thi)

Mr. Doan Ngoc Anh, Director of Metect Mechanical and Environmental Joint Stock Company (Yen My) said: After more than 10 years of accompanying the development of businesses in Vietnam, the company has always focused on applying science and technology and modernizing the production process, improving product quality. Up to now, the company has invested in high-quality machinery systems such as: CNC laser cutting machines, CNC milling machines, CNC plasma machines, universal lathes, semi-automatic welding machines, etc. to manufacture and process according to the requirements of mechanical products with the brand name "made in Vietnam" in the global market.

In addition to the achieved results, currently, many mechanical enterprises have not mastered the capital source, have to borrow to invest at high interest rates and are bound by unfavorable conditions of sponsors or financial partners; technology is still simple compared to other countries in the region. Along with that is the lack of connection and gathering of mechanical enterprises, leading to the difficulty in forming specialized mechanical enterprises, bringing investment efficiency.

Mr. Le Van Phuong, Director of Halo Mold Tech Co., Ltd. (Yen My) said: Most domestic enterprises are small and medium-sized, so it is difficult to "compete" with large-scale foreign enterprises, as well as the difficulty to access support policies. Regarding taxes alone, if foreign enterprises invest in production in Vietnam, they will be exempted or reduced import taxes on technology and production lines; medium-term loan interest rates for production are also low; and they will enjoy preferential land rental costs...

According to the province's orientation, by 2025, supporting industry will become an important industry of the province, with enough capacity to produce and supply components and spare parts for a number of domestic industries. By 2030, the supporting industry will gradually participate in the global supply chain of large multinational corporations in the world.

To promote the development of the mechanical industry, the province has built a database of market information, prices, manufacturers, etc. to provide information for businesses operating in the mechanical industry; build policies on loans, taxes, etc. to facilitate mechanical enterprises as well as enterprises producing supporting products for this industry. Along with that, the province has increased programs and measures to encourage and support enterprises to invest in depth, improve product quality to meet international standards. In particular, continue to focus on supporting and attracting businesses to invest in mechanical fields serving the automobile, motorbike, construction mechanics, electrical equipment and supplies industries, etc.

With Vietnam’s participation in many Free Trade Agreements (FTAs), the province's mechanical enterprises are facing great opportunities, with advantages in being able to export to markets, while attracting foreign investment to Vietnam. In some key areas, the province's mechanical enterprises can master technology, produce and manufacture mechanical equipment serving the mining, thermal power, chemical industries, and synchronous equipment serving manufacturing in industrial plants.