To exploit the potential for supporting industries development

Over the years, Hung Yen has always been a province in the top of localities attracting high foreign investment nationwide. Enterprises have invested in a variety of industries and fields, especially those with high technology content. This has created a lot of opportunities for the development of supporting industries.

Production at Dong Yang E&P Vietnam Co., Ltd. (My Hao town)

In the context of a volatile global economy, promoting the development of supporting industries not only contributes to the economic growth of the province but also creates opportunities for domestic enterprises to improve their competitiveness in the international market. To implement Resolution No. 07-NQ/TU dated June 15, 2021 of the 19th Provincial Party Executive Committee on the Industrial and Handicraft Development Program of Hung Yen province for the period 2021-2025, with a vision to 2030, the province has deployed the Project on restructuring the provincial industry for the period 2021-2025, with a vision to 2030, focusing on developing such key industries as: Mechanical engineering, prioritizing the development of automobile products, machinery, and equipment serving economic sectors; electronics, information technology, prioritizing the development of products, including: Electronic equipment, refrigeration, high-tech industrial products; supporting industries serving key industries to increase production value and participate in the global production network and value chain. According to the province's orientation, by 2030, supporting industries will gradually participate in the global supply chain of large multinational corporations in the world, specifically: For the mechanical engineering sector, by 2030, the production of metal mechanical spare parts reaches 1,000 - 1,200 thousand products and manufactured steel reaches 250 - 300 tons of various products. For the electrical and electronic equipment sector, by 2030, the production of electronic components and electronic microchips reaches an output of 19-21 million products of various types. For electronic materials, plastic components, rubber, and mechanical - electronic parts of various types, the output reaches 110 - 125 thousand tons of products. Production of batteries for computers and mobile devices reaches 1.5 - 1.7 million Kwh...

To realize the set goals, the province has boosted investment promotion activities, focusing on organizing investment promotion conferences in Japan, Korea, and European countries to invite businesses to learn about the province's investment environment. The province is interested in reviewing, adjusting and supplementing planning, expanding industrial parks (IPs), synchronously building infrastructure for IPs and inter-regional connection infrastructure; consolidating and improving the quality of services serving operations in IPs. Along with that, the province is committed to always accompanying and helping businesses quickly build factories, access and enter the market in the shortest time, achieving the highest efficiency. At the same time, it is interested in removing difficulties in capital sources; tax and customs procedures, training and recruitment of workers for businesses; directing departments, branches, vocational training schools to focus on training qualified human resources with skills to meet the requirements of enterprises; promoting administrative procedure reform, creating the most favorable conditions for enterprises...

With a favorable investment environment, in recent years, the province's supporting industry enterprises have continuously increased in quantity, scale and quality. According to preliminary statistics of the Provincial Industrial Park Management Board, out of a total of 650 projects being invested in industrial parks, there are more than 300 projects in the supporting industry sector. In the first 2 months of this year, the province’s industrial parks have attracted about 10 new projects in the supporting industry sector. Currently, supporting industry enterprises are operating effectively in production and business, mainly in the following industry groups: Production of rubber and plastic products; mechanical engineering; production, repair, maintenance, installation of machinery, equipment and means of transport; chemicals, fertilizers; electrical and electronic equipment; wood and paper processing; food and beverage processing... Among them, there are many supporting industry enterprises from large corporations in the world, typically: Kyocera Vietnam Co., Ltd. (Yen My) specializes in manufacturing electronic ceramic components, telecommunications equipment, jewelries; LTK Vietnam Co., Ltd. (Van Lam) operates in the production of batteries and accumulators, manufacturing spare parts and auxiliary parts for motor vehicles and car engines... with a market in Japan.

According to Mr. Kim Jae Man, General Director of DongYang E&P Vietnam Co., Ltd. (My Hao town), a 100% Korean-invested enterprise specializing in manufacturing components, accessories and attachments for phone battery chargers, assembling and installing phone battery chargers, vacuum cleaner circuit boards: With the province's attention and creation of a favorable investment environment in all aspects for business development, the company is planning to expand production. We look forward to continuing to receive support from the province, especially in terms of administrative procedures.

Comrade Vu Quoc Nghi, Head of the Provincial Industrial Park Management Board, said: With the advantage of being located in the center of the Red River Delta, with a convenient transportation network, in recent times, Hung Yen has become one of the bright spots in investment attraction. In particular, the supporting industry has been receiving much attention from foreign direct investment enterprises, opening up many potentials for the development of supporting industry in the province.

However, according to the assessment of the functional sector, the province's supporting industry has not yet fully exploited its potential. Enterprises involved in this field are mostly small and medium-sized enterprises, so they face many difficulties in terms of market, technology, human resources, capital, etc. Besides, the province's supporting industry market is still small in scale, with low output, so it has not attracted many partner enterprises. Therefore, increasing the localization rate for supporting industry products of the province is still difficult. Comrade Vu Quang Thang, Director of the Department of Industry and Trade, said: In order to promote the development of the supporting industry, the department has been advising the province to effectively and synchronously perform specific mechanisms and policies for supporting industry development. In particular, localities are encouraged to invest resources to implement policies, programs and activities to support supporting industry enterprises on the basis of legal regulations and ensuring compliance with the actual situation of the locality. At the same time, continue to carry out preferential interest rate policies for supporting industry enterprises; develop human resources in the field of supporting industry through programs and plans to improve skills, beef up links between training institutions and businesses; promote international cooperation in training and developing human resources...