Dong Nai is a rising industrial power with industrial output representing a large portion of its annual GDP (more than 57 percent). The supporting industry plays a significant role in increasing the competitiveness of manufacturing and assembling industries; improving the localisation rate and helping advance industrialisation and modernisation with an orientation toward intensive expansion and development. The goal is for the supporting industry of Dong Nai to become the core industry of the province by 2020.
Manufacturers investing in Dong Nai are mainly processing and assembling industries producing clothing, equipment, electrical and electronics. The majority of spare parts, equipment and raw materials are imported from abroad, which dampens the profit for investors. In the long term when the current competitive advantage disappears, if Dong Nai does not focus on developing the supporting industry, it will have a hard time retaining its investors, let alone attracting new ones. The supporting industry will create a momentum for producing finished products; make businesses less dependent on imported raw materials; increase industrial production output; encourage investors to expand their current operations; and create a more favourable business environment. All of these will help reduce the trade deficit and create a solid foundation for sustainable development.
The goal for 2020 is that the supporting industry of Dong Nai will become the core industry of the province. More specifically, the production output of the support industry is forecast to increase from VND35.2 trillion in 2010 to VND198 trillion in 2020.
According to Ms Bo Ngoc Thu, Director of the Dong Nai's Department of Planning and Investment, based on research and evaluating potential as well as existing competitive edges, the province will focus on three core supporting industries: producing mechanical components, electronic spare parts and clothing and footwear. By 2020, the supporting industry of Dong Nai should be relatively more developed than in other cities and provinces.
To support what has just been declared, Ms Thu claims that Dong Nai has many advantages and is a fertile land to develop the supporting industry.
Regarding the mechanical and electrical and electronics industries, Dong Nai already houses several manufacturing and assembling facilities, turning out cars and motorbikes by VMEP, SUZUKI, washing machines by Sanyo, Olympus cameras, agricultural equipment by Vikyno, and electrical motors by Toshiba and Mabuchi. Dong Nai is currently a major processing centre for brands such as ADIDAS, NIKE, REEBOK and big fashion companies. This is really beneficial for the development of the footwear and clothing industries.
Regarding the investment location, Dong Nai is among the provinces whose industrial zones already have the necessary infrastructure in place. Especially, the province has just gained the Prime Minister's approval to establish three pilot industrial zones which specialise in the supporting industry.
In order to further develop the supporting industry in Dong Nai, Ms Thu suggests that the province should have the necessary policies in place to create a favourable environment for the supporting industry. More specifically, infrastructure companies in the industrial zones need to build warehouses which cater to different investors' need; and they should also be willing to consider investors in the supporting industry who wish to rent small spaces in the industrial zones or groups.
Tuan Minh
Vietnamese
