Vietnam’s mechanical manufacturing industry is estimated to earn more than US$2 billion from exports this year, compared with US$1.175 billion last year, said Minister of Industry and Trade Vu Huy Hoang.
Minister Hoang said at a conference on Vietnam’s strategy to develop the industry through 2010 in Hanoi December 8 since the government approved the strategy in 2002, the mechanical manufacturing industry has obtained encouraging achievements.
In the 1990s, the industry met only 8 per cent-10 per cent of the country’s demand. It now meets 40 per cent of the demand with an average annual growth rate of more than 40 per cent, he added.
Currently, about 40 per cent of automobile parts are produced domestically and the local auto sector can now make light trucks, less than 5 tons.
Motorbike production has made enormous strides during the past five years. It now not only satisfies the local demand but also exports some 150,000 units per year. However, most exporters are foreign-invested. The proportion of motorcycle assembly inputs produced locally is now 80 per cent-90 per cent.
Mr. Hoang said the local market still holds a lot of potential in the mechanical sector. Local enterprises can currently manufacture about 30,000 diesel engines per year while the demand for them has grown to 200,000.
He pointed out enterprises should focus on making more complete units of equipment because the cement industry will construct eight 900,000-ton cement factories in addition to some 1.4-to-2.3-million-ton plants by 2009, according to development plans.
Some 40 projects to build 10-30 MW hydroelectric stations have also been approved and the mechanical industry can take part in making equipment for these projects, Mr. Hoang added.
According to Nguyen Van Thu, President of the Vietnam Mechanical Manufacturers Association, the State should pour enough investment for strong development of the industry, so that it can integrate into the world economy. (VNA, VietNamNet)
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