Vinh Phuc province gives priority to supporting industry development

Illustrative image (Photo: VNA)

Vinh Phuc (VNA) – The northern province of Vinh Phuc is adopting a number of mechanisms and policies to attract investment in the development of supporting industries, considering it as an important step to build a sustainable industry.

Hoang Thi Thuy Lan, Secretary of the provincial Party Committee, said the province has set a target that its supporting industries will become a part of the supply chains with high value products in the production lines of large domestic and international corporations by 2025.

Besides incentives policies from the Government, the province has also been focusing on many solutions to promote the growth of supporting industries.

The provincial authorities have proactively created favourable conditions for businesses such as investing in modern and synchronous infrastructure in industrial parks and paying attention to administrative reforms.

Enterprises are facilitated to access capital and assisted in technology innovation and transfer as well as enhancing productivity and quality.

The province will cover costs of organising the assessment and certification of the capacity for enterprises engaged in supporting industries and support 70 percent of fees for holding seminars to promote domestic and foreign investment in the field as well as payment for organising trade fairs which aims to connect supporting industries.

It will subsidise 70 percent of training costs to improve the quality of human resources to meet the requirements of the industry.

According to the provincial Department of Industry and Trade, the province currently has nearly 240 enterprises operating in the field of supporting industries or related to the industry. Most of them belong to the mechanical industry, automobiles, motorcycles, garment and textiles, informatics, and building materials. This is considered as a foundation for industries to develop towards using advanced and highly competitive technologies and increasing the localisation rate of key industrial products.

Despite being affected by the COVID-19 pandemic, the industrial production index of Vinh Phuc in the first six months of this year still reached over 145.91 trillion VND (6 billion USD), an increase of more than 26 percent over the same period last year.

Most of the main products of the supporting industries have obtained high growth, in which, the production of automobiles rose by 49 percent and electronic components rose by 34 percent.

Supporting industries in Vinh Phuc have created jobs for tens of thousands of workers with stable incomes. The average salary  for manual labourers in the industries is between 6 to 8 million VND per person per month while a technical or skilled worker earns up to 15 million VND per month.

Vietnam Precision Industry 1 Co. Ltd. in Khai Quang Industrial Park, Vinh Yen city, is an example. It is an enterprise with 100 percent investment capital from Taiwan (China), specialising in the production of components and spare parts for automobiles and motorcycles, medical equipment for domestic and export markets.

The company's revenue has increased steadily from 2.7 trillion VND in 2015 to nearly 4 trillion VND last year. It  has generated stable jobs for 4,100 employees with an income of around 10 million VND per person per month.

Jahwa Vina Co., Ltd., a FDI enterprise in the Khai Quang Industrial Park, is reported to obtain revenue of over 1 trillion VND in the first months of this year despite the impact of the COVID-19 pandemic.

It creates jobs for more than 4,000 labourers with income between 6-8 million VND per person per month. The company is striving to complete the goal of producing about 300 tonnes of electronic components and 150 tonnes of information technology components a year.

Vinh Phuc province has set the goal of having more than 50 enterprises engaged in supporting industries that are eligible to become first-tier and second-tier suppliers for large economic groups and at least 10 enterprises in the industry that meet international standards and participating in the global supply chains by 2025./.