Driving Sustained Development and increasing Industrial Value

3:59:20 PM | 7/7/2024

Quang Nam determined that one of key tasks and solutions of local socioeconomic development in the 2020 - 2025 period is sustainable industrial development. Especially, according to the sectoral development plan in the 2021 - 2030 phase, with a vision to 2050, the province emphasized circular, specialized and automated industrial development and rapidly increased the share of industrial processing and manufacturing - the main pillar of the economy.

Increase added value

Quang Nam province has encouraged investment in new product research and development and value chain extension, helping improve added value and production efficiency by boosting high-tech sectors and industrial products with high added value, clean technologies and industrial products for export. The province focused on developing industries and industrial products with comparative advantages such as electronics, computers, electrical equipment, new materials and metal production. It has restored and developed the mechanical engineering sector; attracted mineral producers and processors to create input materials for developing mechanical engineering and electronics industries.

Thaco Chu Lai Industrial Park

At the same time, the province moved to high-value stages in the value-added chain of each industry; strengthened cooperation in investment, production and business between local companies and FDI firms to gradually join deeper in global production networks and value chains; and strongly developed supporting industries for locally advantageous key industries, supplied input materials, and increased the domestic share in industrial production.

The province accelerated infrastructure construction in planned industrial zones to attract investors. In the coming period, Quang Nam will not develop new industrial zones in urban areas while focusing and prioritizing investment in building industrial zones in the western region; encourage the formation of production clusters for prioritized industries and create a foundation and basis for connecting manufacturing chains, product chains and value chains and improving corporate competitiveness; develop processing and manufacturing sectors together with high quality services and supporting industries for agricultural production and processing in rural areas. The province will attract industries and industrial products with comparative advantages and connections with localities in the region. With the foundation built in the previous stage, Quang Nam province has policies to encourage and support FDI firms to transfer electrical and electronic equipment manufacturing technologies to local companies.

Advantageous industries

Electrical and electronic equipment industry

Given very high global demand for electronic products, competition in this field among countries in the region is also fiercer. Quang Nam province focuses on developing the electrical and electronic equipment industry to become a key industry and create motivation for other industries to develop. The province associates the production of local companies with FDI companies to take part in the supply chain more deeply; prioritize technological application to production management and overall administration of electronic companies to optimize processes.

Thaco Industries has invested in a mechanical center, showcasing state-of-the-art technologies at Thaco Chu Lai Industrial Park

Quang Nam continues to attract investment in manufacturing household-oriented electronic products; support electrical, electronic and information technology equipment industries; manufacture electrical equipment (mainly energy-saving equipment that runs on new energy and renewable energy); facilitate businesses to boost production, encourage investment in new product research and development and value chain extension. The province aims to make electrical products running on clean energy and renewable energy.

Mechanical engineering industry

Mechanical engineering is one of the important industries that drives the province's economic development. Therefore, in the coming years, based on the automobile manufacturing and assembly industry and the mechanical manufacturing industry, Quang Nam will continue to invest in new product research, design and manufacture, technology transfer and modern technology; improve the capacity of large billet casting, forging and production, heat treatment, surface treatment, material supply and standard semi-finished product supply to manufacture components and spare parts for three main mechanical sectors: Synchronized equipment, machine tools and construction machinery. The province will gradually restructure products with competitive advantages for export.

The province gives priority to products that meet green, energy-saving criteria and higher automation; continues to attract investors to make components, spare parts and equipment for key, strong industries and spread its effect to the entire central key economic region, including supporting industrial products for high-tech industry, high-precision plastic molds, high-quality mechanical items, and high-quality plastic parts. The province will form a strong force of companies capable of supplying components to assemblers, especially FDI firms and corporate giants in key economic regions; develop the capacity of designing and manufacturing complicated components and assemblies for export markets.

Textile and garment, leather and footwear industry

In the past years, the province’s textile and garment industry has developed rapidly, with clear growth steps, and made important contributions to local economic restructuring and socioeconomic development. However, this development is not really sustainable. A majority of local garment products are made in the CMT (Cut, Make, Trim) form for FDI companies for export (of which CMT accounts for about 90%). The textile industry is still mainly handwoven, turning out not-high product quality and low production value.

Therefore, Quang Nam province is building a specific strategy, creating all conditions for businesses to mobilize all resources to quickly convert from traditional processing methods to FOB methods (purchasing raw materials - selling semi-finished products); and gradually increasing the localization rate to reduce imports and production costs to enhance production value and efficiency. At the same time, the Provincial People's Committee approved the project to develop supporting industries for the textile and garment industry in the 2014 - 2020 period.

According to the project, the province will form a center for the development of supporting industries for the textile and garment industry in Que Son and Thang Binh districts; plan and call for fiber, yarn and textile dyeing factory investment projects and accessory production projects in industrial zones in Nui Thanh, Thang Binh, Duy Xuyen, Que Son and other districts. Moreover, Quang Nam will offer a series of preferential policies to appeal businesses to open textile - garment, leather - footwear, rattan and bamboo facilities and will invests in restoring traditional craft villages in rural areas such as providing available spaces in industrial clusters or outside industrial clusters, supplying electricity to the fence of licensed projects, granting 100% of vocational training costs for workers, and offering 100% financial support for participating in fairs, exhibitions, and trade promotions in the province.

To develop the textile and garment industry, the Provincial People's Committee signed a cooperation agreement and proposed Vietnam National Textile and Garment Group (Vinatex) to act as a core force to lure domestic and foreign enterprises to invest in supporting projects for the textile and garment industry in the province and facilitate local textile and garment companies to access and expand product consumption markets. In the future, Quang Nam will continue to perfect the investment attraction strategy for the textile and garment supporting industries, the human resource development strategy for the textile and garment supporting industry and issue preferential policies to appeal more investors into the textile and garment industry. This move will create more jobs, help accelerate labor restructuring, increase income for rural people and create breakthroughs in the socioeconomic development strategy.

Nguồn: Vietnam Business Forum