Defining that supporting industries make high value-added products and enhance production efficiency, in addition to its development of downstream industries, Quang Nam province has focused on developing supporting industries in some fields, mainly mechanical engineering, that serve the development of automobile and garment – textile industries.
In mechanical engineering industry, Truong Hai Group has attracted 21 parts producers for its sedans, trucks and buses. The group’s localisation rate of its automobiles is 52 percent in buses, 46 percent in trucks and 16.2 percent in sedans. Supporting industries for the garment – textile industry are also quite developed. The province has given priority to companies specialised in producing components, equipment, machines and inputs for automobile, electronics, engineering, garment – textile, and leather – footwear industries.
In addition, to develop supporting industries, the Quang Nam Provincial People’s Committee issued Decision 1286/QD- UBND dated April 24, 2014 to approve the Quang Nam Supporting Industry Development Plan to 2020, with a vision to 2025, and Decision 285/QD-UBND dated January 22, 2014 to ratify the Garment – Textile Supporting Industry Development Scheme in the 2014-2020 period. Many domestic and foreign companies engaged in supporting industries have registered to invest in garment – textile supporting industries in the province. Currently, Quang Nam is establishing garment – textile supporting industry zones to ensure environmental sanitation. The province also approved the plan to build a specialised zone for supporting industries in the Chu Lai Open Economic Zone in Nui Thanh district.
However, the development of Quang Nam supporting industries is low because of the small market scale, weak producers, and ineffective policies. Hence, supporting industries do not draw many companies, resulting in low localisation ratio in some products. To overcome these weaknesses and develop effective supporting industries to serve economic development, Quang Nam province will focus on completing and developing the National Automobile Engineering Centre in the Chu Lai Open Economic Zone, set up specialised zones for supporting industries for garment, textile and dyeing industries, encourage all economic sectors to invest in mechanical engineering industries, and attract big companies, especially foreign-invested ones, to the province. Additionally, Quang Nam will also concentrate on drawing subcontracting companies specialised in high-tech, modern mechanical engineering, expanding the development of garment and textile supporting industries, attracting investors engaged in spinning, dyeing and material production, and setting up a garment and textile centre in Que Son district.
Trying to become an industrialised province by 2020, the province has invested in key industries using advanced, modern, resource-efficient technologies to create spearhead industrial products. Nguyen Quang Thu, Director of the Department of Industry and Trade of Quang Nam province, said this is a breakthrough approach to make Quang Nam a centre of supporting industries. In the near term, the province will focus on expanding the development of supporting industries for mechanical engineering, garment – textile, and leather – footwear industries. He stressed that “Truong Hai Auto Group (Thaco) and Vietnam National Textile and Garment Group (Vinatex) will be the nuclei for the development of supporting industries in the province.”
To realise the above strategies, Quang Nam will issue specific policies concerning tax incentives, land rent, infrastructure use, credit support, market development, scientific and technological application, and personnel training.
Minh Tuan
Đăng ký: VietNam News