HCM City seeks to meet 65 percent of supporting industry products demand

HCM City (VNS/VNA) – Ho Chi Minh City has set itself a target of meeting 65 percent of its demand for supporting industry products by 2025 by honouring and supporting business that invest in supporting industries.

Supporting industries are the backbone of its industry, playing a key role in raising the competitiveness of its industrial products, and a decisive factor in the nation’s competitiveness.

The Saigon Hi-tech Park would strive to attract investment in technology and supporting industries this year, Nguyen Anh Thi, director of its management board, said.

Last year Hong Kong company TTI, Inc., a wireless industrial electrical equipment manufacturer, invested 650 million USD in the park and is looking for local suppliers of parts.

It plans to set up a plant and R&D centre and make Vietnam its new manufacturing base.

As part of its efforts to attract investment, the park has organised high-tech supporting industry development programmes to help firms link up with lead firms, like business matching activities between foreign and Vietnamese enterprises, and with export processing zones and industrial parks around the country.

Earlier of this year the city's Department of Industry and Trade honoured 92 industrial products of 2020, including 43 supporting industrial products. They included some key products such as precision moulds for the plastic and metal stamping sectors from the Lap Phuc Precision Mold Company.

According to the department, the city has in recent years adopted many mechanisms and policies to back supporting industries, including programmes to link up local suppliers with foreign manufacturers.

The Lao Phuc Precision Mold Company is supplying precision moulds to Colgate, Hiep Phuoc Thanh and Minh Nguyen, which have become vendors for Samsung, and Thong Nhat and Amura Precision, which make plastic components for tier 1 and 2 suppliers of automobile companies, it said.

According to foreign companies, Vietnamese firms have made great progress in the manufacturing of industrial supporting products.

Many now confidently introduce their products to foreign firms, and not just simple products like screws, moulds and plastic packaging, but also high value-added products such as motor cores, electronic chips and circuit boards.

To promote the development of supporting industries, the department is drafting an investment stimulus programme for 2021-25 for supporting industry enterprises to improve their production technologies and equipment and make more products meeting global corporations’ requirements, and entrench themselves in global supply chains.

Supporting industries are key to raising the value of the industrial production, and promoting them is vital to attracting more large foreign investors to the city, Thi added./.