Vinh Phuc Focuses on Developing Supporting Industries

10:34:39 AM | 7/11/2019

The 15th Party Committee Resolution of Vinh Phuc province requested "focusing on industrial development and considering industry a foundation to create high economic growth, stimulate service and agricultural development". To fulfill this requirement, Vinh Phuc province considers the development of supporting industry an indispensable requirement to achieve the industrial development goal.

From that policy, Vinh Phuc has planned 18 industrial parks (IPs) with a scale of 5,200 ha, of which 09 IPs have been established and granted investment certificates with a total area of ​​more than 1,842 ha and the total registered capital of over VND7,914 billion and US$117.42 million. The province has also planned 32 industrial clusters (IC) of handicraft and small-scale industries with a total area of ​​625 ha, of which 16 have been formed with a total area of ​​334 ha. The policy of supporting industry development has helped Vinh Phuc’s industry achieve a good growth rate, contributing to the development of local key industries, such as mechanical engineering and car and motorcycle assembly.

Supporting industry also helps to form a production link between domestic enterprises and FDI enterprises, enabling domestic enterprises to gradually access advanced technology and to participate in the global value chain of multinational companies. However, in reality, the supporting industry projects on the production of automobile and motorbike components are still small and sporadic, while the products are short in number of types and volumes, which can’t create competitiveness, therefore, to meet the needs of domestic production, the automobile industry still has to import a large number of components and spare parts every year.

Therefore, in the coming time, Vinh Phuc province will build programs to promote investment, support businesses and investment projects on technical infrastructure and social infrastructure in order to support the development of supporting industry in the province to 2020. At the same time, it will pay attention to the infrastructure projects of IP and IC meeting modern standards and the demands of investors. The province also invests in creating linkages between businesses and large companies and corporations, such as between large domestic and foreign assembly companies, suppliers and domestic enterprises to become a supplier. The province will focus on technology transfer consultancy, business incubator, technical and expert support; support to improve corporate governance capacity, to build technical human resources for the development of supporting industry.

Currently, Vinh Phuc province has nearly 200 enterprises operating in the field of supporting industry, with a total registered capital of about US$2.5 billion. The SI enterprises investing in Vinh Phuc focus on supporting industry for five major industry groups including: mechanical engineering; electronics-informatics industry; automobile and motorbike industry; textile and footwear industry; and building materials industry. Vinh Phuc will create favorable conditions for businesses to invest in the province effectively, especially supporting industry projects for manufacturing automobiles, motorcycles and electronics.