Hanoi Has Huge Potential in Developing and Distributing Supporting Industrial Products

In fact, supporting industries of Vietnam in general and of Hanoi in particular have developed for more than 20 years but the development is spontaneous, irrational and unfocused. Therefore, the Hanoi Supporting Industry Development Orientation in the 2011 - 2015 period focuses on sectors of its competitive advantages like automotive and motorcycle parts and mechanical parts.

 

Automobile and motorbike parts production is the strength of Hanoi’s supporting industries. Revenues from this sector was estimated to top VND30,000,000 billion in 2010, accounting for roughly 40 percent of the country’s total. This sector provided 30,000 jobs and paid over VND2,000,000 billion to the State Budget last year. In terms of market, this sector also adds wings to the development of other industries like metallurgy, mechanical engineering, outsourcing, technical rubber and electronics. According to the Hanoi Department of Industry and Trade, the city will focus on manufacturing products with a medium level of complexity, stable quality, profitability and a localisation content of 65 percent (for trucks) and 80 percent (for motorcycles). It will accelerate the research and development of engines and complex parts in auto and motorcycle sector.

 

As for mechanical engineering sector, Mr Luu Tien Long, Director of the Hanoi Department of Industry and Trade, said: The development of supporting industries is an apparent and necessary trend because this helps speed up the development of mechanical sector - a foundation for the cause of industrialisation and modernisation. In 2010, this sector raked in over VND21,000,000 billion, accounting for 29.16 percent of the country’s total, generated jobs for 28,154 workers, and paid VND600 trillion to the State Budget.

 

From now to 2015, the mechanical manufacturing sector will concentrate on manufacturing moulded parts, heat-treated products, and hi-tech cutting, etc.

 

According to the department, apart from the above two major industries, Hanoi will also encourage the maintenance and development of supporting industrial products for electronics and IT industries. Parts for electronics sector will account for 10 percent and parts for electrical material production will make up 14 percent.

 

Mr Luu Tien Long said that in order to perform efficiently and correctly in line with the Hanoi Supporting Industry development Orientation in the 2011 - 2015 period, in addition to efforts of concerned companies, the support of the State is essential to create a favourable investment environment and better infrastructure for development.