According to Ministry of Industry and Trade (MOIT), it is necessary to determine demand of market, identify gaps for development and fields possible for competitiveness in order to boost Vietnamese mechanics. While expanding market for enterprises (DN), mechanism and policies need adjusting to encourage investment and production expansion of enterprises.
According to Industry Agency (MOIT), the quantity of mechanical enterprises operating and making profit reaches 25,014, makes up nearly 30% of the number of processing and manufacturing industry enterprises while net revenue from production and business (SXKD) is VND1,405,008bl, taking on 1,123,545 employees.
In fact, a few of domestic mechanical enterprises brand successfully. Most of them are small and lack of competitiveness without mastering entirely core technologies in mechanics. Moreover, products bear poor quality but high cost and hardly a major brand competes against imported ones.
Mr. Nguyen Ngoc Thanh – Deputy Director General of Industry Agency, explained: There are a subjective and an objective reason. First, the solidarity between the enterprises is still weak. Second, bank interest rate is an objective factor. Businesses find it very difficult to borrow with an interest rate from 8% – 9% per year. Other factors should also be listed such as marketing, area link, employees, etc. “On the latter, mechanics is acknowledged to be a key sector by the State but issuing mechanisms and policies still keeps sluggish. The governing authorities should continously recommend and issue practical policies. It is uneffective unless determining a departure instead of calling upon” – said Thanh.
Sharing about this trouble, Mr.Nguyen Duc Cuong – General Director of Hikari Vietnam Production Trading Co.,Ltd, commented: For the recent years, mechanical enterprises have gained breakthroughs, of which are Vinfast, Thanh Cong and Thaco. It takes Vinfast only 21 months to release his cars with domestic brand. Several prominent businesses in the field of manufacturing machinery are Toyota, Nikon, etc. However, the businesses rank mechanics as auxiliaries. In the future, the Sector requires further materials, molds and manufacturing machinery instead of rudimental machining.
Focusing on fundamental mechanics
In fact, there have been many texts for developing mechanics such as the 2014 Law on Investment, Decree No.23-NQ/TW dated March 22nd, 2018 by Politburo on orientation for building policy to develop the national industry to 2030, vision to 2045. Evidently, the development of machanics attracts the attention from the Party and Government. However, it is stressed by experts that, the State and businesses should prioritize some fundamental fields in order to find out particular solution. In particular, it is necessary to invest and prioritize supporting industries (automobile, shipbuilding, mechanical engineering for agriculture, forestry and fishery); encourage domestic metallurgical factories to invest in fabricating steel for input material of mechanics; quickly reduce busniess income tax for mechanical business from 25% (current level) to 15%; raise priority coefficient to business using domestically manufactured products instead of imported goods up to 15% in summary statement without adding 7.5% of total score according to current score, in case of bidding.
Thanh added that, mechanics has to establish his own domestic market. “Up to 2030, global demand of the Sector is expected around USD300bl while Vietnam can meet one third. It means we have a huge opportunity to access the global market. We need to lower cost, keep stability and create our own market in order to boost Vietnamese mechanics”, Thanh said. The leader of Industry Agency told about an active accessing mechanical businesses for propaganding concerned policies and facilitate the Sector to develop sustainably.
The Agency commented that Vietnam is executing the open door policy with new integration commissions. It means both protecting mechanical products made domestically and active international integraton are required.