Vietnam seeks investment for supporting industries

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Such zones will be Vietnam seeks investment for supporting industriesconstructed in Hanoi, Vinh Phuc, Bac Ninh, Hung Yen, Hai Phong, Dong Nai, Ba Ria – Vung Tau, Binh Duong, Tay Ninh and Danang. Such zones will primarily aim at attracting projects in mechanical engineering and metallurgy, according to the master plan on industrial development approved by the Government on June 9 and announced by the Ministry of Industry and Trade on Monday.

As reported by the ministry, the plan for supporting industries in engineering and metallurgy will focus on manufacturing small components including wires, bolts and screws, as well as control systems, electric machines, diesel and gasoline engines, and spare parts for processing of agricultural, forestry and fishery products.

The ministry will also try to attract foreign investment into high-tech manufacturing and fundamental production phases that are still underdeveloped in Vietnam.

The ministry reckoned that for the electronics and informatics industry, Vietnam’s supporting industries have largely relied on foreign-invested enterprises, who make up 90% of the total investment. Domestics companies are using 60% of the labor force, yet only making up 10% of the total investment.

The garment-textile and footwear industry is a major foreign currency earner, yet its localization rate remains low due to the absence of supporting industries. Over 80% of cloth, leather and garment accessories such as thread, button, metal zipper, and lining materials are still imported.

The master plan also establishes industrial development space for different industries.

The Northeast’s midland will develop mineral processing, agro-processing, hydropower and metallurgy sectors, while the Red River Delta will be home to engineering, metallurgy, chemicals, thermal power, high-tech, and mechanical engineering facilities.

The central coast will focus on manufacture of construction materials, seafood processing, shipbuilding, and shipping industries; the Central Highlands will develop forestry processing, mineral processing and construction materials.

The southeast region will develop mechanical engineering, petrochemical products, chemicals, electronics, high-tech industry, and research and development (R&D) activity for supporting industries. The Mekong River Delta will focus on agro-processing, seafood processing, agro-mechanical engineering, building and repairing vessels for offshore fishing.

SGT/VNN

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