Solutions to develop Ba Ria-Vung Tau's supporting industry

Ba Ria-Vung Tau (VNA) – The southern province of Ba Ria-Vung Tau has planned various measures to remove difficulties facing businesses and boost the growth of the supporting industry.

As part of the efforts to implement the Government’s Resolution 115 on promoting the supporting industry, Ba Ria-Vung Tau has called for enterprises with high capacity to join the global supply chain.

Operating from April, 2021, Novas EZ Vietnam Co., Ltd. In B1 Conac Industrial Park in Phu My Town, which specialises in producing television mainboards, has become one of the strategic partners of Samsung as a supplier for the group.

However, Novas EZ is only one of the few businesses joining the supply chain.

According to the provincial Department of Industry and Trade, Ba Ria-Vung Tau is home to only 80 firms in the supporting industry for various sectors such as electronics, ship building and repair, machineries, chemicals and mechanics.

Meanwhile, the supporting industry makes up nearly 88% of the province’s industrial production excluding oil and gas. Last year, it made up 50% of the locality’s industrial production, equivalent to 150 trillion VND (6.23 billion USD).

At a recent working session with leaders of Ba Ria-Vung Tau, Deputy Minister of Industry and Trade Do Thang Hai said that the province is one of the localities with a strong industrial sector. However, the supporting industry has expanded slowly and remained dependent on foreign enterprises, he said, pointing out that over 80% of the firms in the supporting industry are foreign-invested.

He said that the majority of domestically-invested companies are small in scale and have modest financial capacity and technologies, with poor connectivity, adding that their engagement into the manufacturing sector of the world has just started.

Therefore, in the time to come, it is necessary to reduce the dependence and promote the development of the support industry at the same time, he stressed.

 

Nguyen Van Dong, Director of the provincial Department of Industry and Trade, said that as part of the efforts to beef up the growth of the industry, the province has applied many measures, including attracting high quality projects.

In November 2021, the provincial People’s Committee issued a decision on the list of industrial sectors prioritised in investment attraction, including high technology industry and the supporting industry.

In the next five years, Ba Ria-Vung Tau aims to become a model in industrial development in association with environmental protection, with in-depth growth of the supporting industry, he said.

Dong added that in order to complete this goal, the province will continue to select investment projects with a large scale and modern, environmentally-friendly technology and no labour intensive./.