Illustrative image (Photo: VNA) Da Nang (VNA) - The central city of DaNang has set a goal of developing supporting industries in tandem withhigh-tech industry to create products with high added value for export.
Under action programme No 01-Ctr/TU issued by themunicipal Party Committee on December 10, 2020, the industry-constructionsector is to grow by 11-11.5 percent annually between 2020 and 2025.
The municipal Department of Industry and Trade has reportedthat several large-scale projects in supporting industries have graduallyjoined the global supply chain.
Since 2016, Da Nang has attracted 24 new supportingindustry projects worth over 9 trillion VND, two of which are foreign-invested,with 240 million USD, specialising in manufacturing aviation and automobile spareparts.
Da Nang is now home to around 110 supporting industryfirms, accounting for 6.3 percent of all industrial enterprises in the city.
However, the number of domestic companies in the fieldremains limited, and most are of small scale with average technologicalcapabilities. Meanwhile, foreign firms mostly process and assemble importedmaterials because the rate of domestically-made items remains low. Links betweenforeign and domestic businesses, meanwhile, are still less than needed.
General Director of the Long Hau Company, Tran HongSon, said a number of local companies have yet to meet requirements for beingrecognised as supporting industry enterprises or manufacturers under Vietnam’sregulations.
He suggested quickly completing planning for an area devoted to supporting industry enterprises inside the DaNang Hi-tech Park (DHTP) and putting it into operation to attract capable investors.
Head of the management board of the DHTP andindustrial parks in Da Nang, Pham Truong Son, said the municipal People’sCommittee has completed the planning for a supporting industrial park in the DHTP,which has been submitted to the Prime Minister for approval.
Once approved, Da Nang will outline a list of sectorsin need of investment and then set up the park, the first of its kind insupporting industries in the city. Investors in the park would work with those atDHTP to create an industrial ecosystem.
If Da Nang develops supporting industries, investmentwill also pour into nearby localities, he said.
Under Politburo Resolution No 43/NQ-TW, Da Nang is to bea nucleus of the central key economic region and will develop hi-techindustries and information technology. To this end, Son suggested making thebest use of its geographical location, infrastructure, human resources, andsupporting industry.
Under the pending plan, the supporting industrial park is to cover an area ofover 102 ha in Hoa Vang district, adjacent to the DHTP and the city's information technology park.
In line with Resolution No 01-NQ/TU from the standingboard of the municipal Party Committee, supporting industry enterprises willincrease in number by 2030 and be capable of producing highly-competitiveproducts, focusing on spare parts, software, and key services in support ofpriority industries. The city will also attract multi-national groups to guideand facilitate technology transfer.
By 2025, the city expects to have over 150 supporting enterprises,with at least 10 percent of domestic supporting enterprises being able tosupply products to manufacturers. The value of the supporting industry willmake up around 30 percent of added valued in the manufacturing and processingsector. At least one multi-national group or company is to invest inmanufacturing end products.
Of the more than 300 supporting enterprises to be inbusiness by 2030, at least 15 percent are to be able to directly supplyproducts to manufacturers and assemblers. The value of the supporting industrywill account for nearly 40 percent of added value in the manufacturing andprocessing sector and at least one multi-national group or company will investin manufacturing end products./.
