Vietnam Mechanics: Targeting Manufacturing of Complete Equipment

Vietnam Mechanics: Targeting Manufacturing of Complete Equipment

To become involved in manufacturing equipment for hydro-electric and thermo-electric power plants, cement and paper pulp mills have created opportunities for the Vietnamese engineering and mechanics industry.

From manufacturing equipment for hydro-electric power plant...

The Machine and Industrial Equipment Corporation (MIE) has recently handled the first lot of equipment, weighting 380 tonnes, for the Pleikrong hydro-electric power plant project. Le Xuan Han, general director of MIE, said that the equipment included concrete casts for the construction of the plant. Apart from Pleikrong, MIE has manufactured equipment for two other hydro-electric power plants, namely A Vuong and Buon Kuop. The corporation is cooperating with the Vietnam Industrial Construction Corporation (Vinaincon) and the Vietnam Institute of Mechanics to manufacture hydro-mechanical equipment for hydro-electric power plants.

Accordingly, MIE manufactures 80 per cent of equipment for works, mainly mechanical equipment for dams, including valves, spillway gates and outlet gates and other equipment, except for turbines and generators which have yet to be manufactured in Vietnam. Vinaincon, on the other hand is responsible for manufacturing cranes.

... to manufacturing complete equipment

Currently, mechanical enterprises have received orders to build ships, train cars and complete equipment for cement factories, breweries and paper pulp mills. The Vietnam Shipbuilding Industry Corporation (Vinashin) has recently won a contract to build a 73,000-tonne ship and is negotiating a contract to build a 100,000-tonne oil tanker.

The Vietnam Machinery Erection Corporation (Lilama) has been assigned by the government to study the manufacturing of a modern revolving kiln for cement production with a capacity of 900,000 tonnes per year to help the cement industry lower prices. Lilama has provided equipment for the cement plants of Phuc Son and Tam Diep. Meanwhile, MIE has won contracts to manufacture and install equipment for the Dong Banh Cement Joint stock Company and Company 77 under the Ministry of Defence.

The Hanoi Mechanics Company has signed a cooperation agreement with the Loesche Group to manufacture grinding machines for the cement industry and equipment for small and medium-sized hydro-electric power plants. Bui Manh Hai, director of the Mechanics and Industrial Installation Company, under the management of the Saigon Brewery Corporation (SABECO), was to be involved in manufacturing equipment for brewery production lines. In the short term, the company will act as a subcontractor to supply equipment for the Cu Chi Beer Factory. It will also become a contractor in manufacturing equipment for beer production as part of future expansion projects of SABECO.

Opening markets

Having planned the development of economic and technical fields, the government has assigned the mechanics industry to manufacture complete equipment for the cement and paper pulp industries, as well as for hydro and thermo-electric power plants, and water supply plants. Equipment for consumer goods production, such as automobiles, motorbikes and other consumer goods will also receive attention from the mechanics industry. More and more markets are opening up for local engineering and mechanical enterprises.

In order to develop its existing advantages in manufacturing super-long and super-heavy equipment as well as complete equipment, MIE has implemented certain projects to expand its production. The projects employ specialisation techniques and forms, with each member enterprise within the corporation selecting and developing its key advantages. Recently, experts from foreign partners have explored the manufacturing capacity of MIE and have affirmed that MIE needed to invest in more machines so as to facilitate the corporation in manufacturing turbines and generators with capacities of less than 100 megawatts. Lilama has invested tens of billions of Vietnam dong in expanding and upgrading its equipment to reach a manufacturing capacity of more than 10,000 tonnes of equipment per year. It has many important production lines including a modern US casting production line to manufacture equipment for the cement industry. The company can now turn out propellers and internal equipment for electric fans.

Do Huu Hao, the deputy minister of industry, said, “In the coming time, the Ministry of Industry will assign the local engineering and mechanics industry, with MIE holding a lead position, to manufacture equipment, including turbines, generators and support equipment for hydro-electric power plants with capacities of less than 50 megawatts. In the next two years, the electricity service will invest more than US$1 billion in developing electricity sources by building hydro-electric power plants. If the engineering and mechanics industry can manufacture 40 per cent of the required equipment, its revenues could reach more than US$400 million. The engineering and mechanics industry is expected to meet between 40 and 50 per cent of the demand for parts and complete equipment in Vietnam by 2010, bringing its revenues up to more than US$3 billion per year.

• P.V