In recent years, industrial production in Kon Tum province has expanded dramatically to become a driving force of the local economy. However, supporting industries are yet to develop proportionally, causing obstacles to industrial production and commodity export.
Mr. Le Nhu Nhat, Director of the Kon Tum Department of Industry and Trade, said that Kon Tum province’s supporting industries are currently serving garment and textile industry, leather and footwear industry, and high-tech. Typical products include metal parts, rubber and plastic parts, and electric and electronic parts. The development investment plan for supporting industries is divided into two phases: 2019 - 2020 and 2021 - 2025.
Accordingly, in 2019 - 2020, the province will focus on attracting investment capital for developing parts manufacturing projects, give priority to projects in line with the current status and socio-economic development orientation of the province like garment accessories manufacturing projects (making buttons, zippers and elastic tapes), apparel accessories manufacturing projects (making cutters, fabric controllers), and leather shoe parts production projects (making shoe soles and shoe soles). By 2025, supporting industries will basically meet demands of the local textile and garment industry. In this period, Kon Tum province will also give priority to manufacturers of metal parts, rubber and plastic parts, and electric and electronic parts. The province will work to establish simple agricultural machine manufacturing facilities and hydropower equipment manufacturing facilities. By 2025, the province will have manufacturers of automobile tires and rubber parts.
Besides, from now to 2025, Kon Tum province will also focus on attracting investors to make materials, specialized support equipment, software and services for high-tech industries; and establish machine maintaining and repairing enterprises up to national standards to service processing industries and post-harvest agricultural product preservation.
In 2019 - 2020, the province plans to spend about VND1.04 billion to carry out investment promotion activities; communicate on supporting industries via mass media; and consult and support businesses to invest in this field. In 2021 - 2025, Kon Tum province will allocate VND10.915 billion to connect and advise local supporting industry enterprises to become suppliers for customers in Vietnam and Southern Laos. At the same time, the locality assists parts producers to apply management systems to meet corporate governance and production management requirements imposed by global production chains, and helps train high-quality human resources for supporting industries.
He added that Kon Tum is still a poor province whose economy is mainly based on agriculture, forestry, industrial and handicraft production of small businesses, cooperatives and households which find it hard to meet required levels and specification of supporting industries. Besides, as Kon Tum is located far from major industrial hubs of the country and its infrastructure system is weak and asynchronous, it faces a lot of difficulties to attract big projects, especially in supporting industries. “In order to overcome these difficulties and weaknesses and add wings for local supporting industries to fly, the Provincial People’s Committee should pay attention to directing relevant agencies and localities to effectively carry out Plan 3400/KH-UBND on implementation of the Kon Tum Supporting Industry Development Program in the period of 2019 to 2025; thereby creating favorable conditions to attract individuals and organizations to develop supporting industries,” Nhat proposed.
|The Kon Tum Provincial People’s Committee issued Plan 3400/KH-UBND on implementation of the Kon Tum Supporting Industry Development Program from 2019 to 2025, aiming to establish supporting industrial facilities by 2020 and meet 10% of local production demand by 2025.|