In the past years, Hanoi’s six key industries, namely garment and textile; agricultural product and food processing; chemical; mechanical manufacturing; electronics and telecommunications; and information technology, have made remarkable development and played important roles in the city’s industrial development. Key industries contribute 60 percent of the city’s total industrial production value and employ for 50 percent of the industrial workforce, many of which are intellectuals and technicians. Most companies pay close attention to research and development, product design innovation, quality improvement, equipment upgrading, and management enhancement. The city has attracted a huge amount of domestic and foreign capital to prop up production and utilise local advantages and potentials. Some industrial products of Hanoi have made their names on the world market.
However, the development of Hanoi’s industry in general and its major industries in particular is not commensurate with its position and inherent strengths. The linking roles of major industries are unclear while not many key industrial products are highly competitive on domestic and global markets. The development of key industrial companies is spur-of-the-moment and not united. They have small operating scales, insufficient capital, backward technologies, and low competitiveness. Investments are unfocused, wasteful, inefficient, and slow. Production costs are high because of heavy reliance on imported materials, leading to low product added value. Hanoi’s industrial investment policies are not as attractive as other localities in the country. Besides, it lacks localised supporting mechanisms and policies, leading to low investment efficiency.
The 15th Hanoi City Party Congress stated: In the coming years, Hanoi will mobilise resources to build and develop a more prosperous, civilized and modern capital city, take the lead in developing a knowledge-based economy, improve economic restructuring, prioritise high-tech and clean industrial development, and create highly valued products and supporting industries. The city will step up the formation and development of fields and components of the knowledge economy (information technology, automation, biotechnology, and new material technology) to become a leading new product research, design and manufacturing centre.
To achieve these objectives, in the upcoming time, Hanoi will focus on developing highly valued industrial products; use modern, environment-friendly technologies with high competitiveness, intellectual content and high profiles on domestic and international markets like information technology, new material technology, mould manufacturing technology and hi-tech industries like electronics, precision engineering, medical equipment, pharmacy and cosmetics; encourage the development of supporting industries for key industries such as electricity, electronics informatics, metallurgy, garment - textile, footwear and food processing; build high-tech parks; and reduce the proportion of extractive and processing industries.
Hai Duc
Vietnamese
