New Way from Supporting Industries

Dong Thap province now has 176 industrial subcontracting companies which employ approximately 1,500 workers. Up to 156 companies are engaged in mechanical engineering; 26 companies specialise in plastic, and two companies are involved in electronic - ICT. Supporting industrial products are mechanical machines, equipment and parts serving agricultural production and processing industry, packages, electronic equipment and parts for processing production. The production value of supporting industries contributes about 2.5 per cent of the total industrial production value. Regarding added value structure in supporting industries, the engineering sector accounts for 94 per cent, the plastic sector takes up 4 per cent, and the electronics - ICT field makes up 2 per cent.

 

In general, Dong Thap province’s supporting industries are of small scale, mainly constituted by class-three or lower firms whose products often fail to meet requirements by industrial firms in the province. Besides, while using backward technologies and making low-quality products, local firms also lack the cooperation to form production chains. For the time being, industrial firms still have to import higher-quality products from Ho Chi Minh City or other countries like Japan, China and South Korea, or European nations.

 

Mr. Nhi Van Khai, Director of Dong Thap Department of Industry and Trade, said, to assess existing constraints and identify development directions for supporting industries, the Dong Thap Provincial People's Committee directed relevant bodies to plan supporting industry development towards 2020, with a vision to 2030, aiming to develop supporting industries of Dong Thap province to the average level in the Mekong Delta by 2020 and to the upper group in the region by 2030. According to the planning, the province will focus on stepping up agricultural mechanisation and manufacturing parts for the agro-fishery processing industry, and upgrade plastic production technologies to diversify products and improve product competitiveness to raise the localisation rate in the overall local industry. Regarding electronics - ICT field, the province will focus on investing in human resource training to acquire know-how, attracting foreign investors to manufacture parts, and gradually formulate production and supply chains connected with multinational corporations

 

According to the development plan to 2020, with a vision to 2030, mechanical engineering, plastics and electronics - ICT will bring the industry of Dong Thap province to a higher level of technological content, labour skill, versatility and product diversity; enhance export capabilities, link local small and medium enterprises engaged in supporting industries. By 2020, the added value growth is expected to increase 17-18 per cent a year in the 2011-2015 period, 20-21 per cent year in the 2016-2020 period, and 18-20 per cent a year in the 10-year phase.

 

Structurally, supporting industries account for about 5 per cent of total industrial production value. The province targets to raise production value per worker to over VND370 million (approximately US$14,800) in 2020 and increase the share of supporting industries in industrial production value to 12-15 per cent by by 2030.

 

To realise the development planning, on November 27, 2013, the Dong Thap Provincial People's Committee issued supporting industry development planning towards 2015 with a central focus given to human resource training, business support, quality improvement and scientific and technological application in production.