Under the ‘Development strategy of the Vietnamese mechanics throughout 2010 and Vision 2020,’ the local mechanics will have to meet at least between 45 and 50 per cent of the local demand and export 30 per cent of its products.
According to statistics by the Ministry of Industry, Vietnam now has over 4,000 centrally and locally-run mechanic enterprises, let alone thousands of private and collective establishments, with around 300,000 workers.
Since 1995, Vietnamese mechanics has seen a high growth rate, around 40.74 per cent per annum. The production value increased from VND 14,839.9 billion in 1995 to VND 64,832.45 billion in 2003, or increasing by 4.68 folds. In 2005, production value of the mechanic industry accounted for 21.39 per cent of total industrial production value, meeting 33.42 per cent of the local demand.
According to Do Huu Hao, deputy minister of industry, during the international integration process, in particular Vietnam’s accession to the World Trade Organisation (WTO), the advantage and the biggest disadvantage of Vietnamese mechanics is market. On average, each year Vietnam has to import mechanic products, valued at between US$8billion and 10 billion. In the mean time, locally-made products account for only between six and eight per cent of the market.
Hao said that most technologies and equipment of the local mechanics were outdated, just between 30 and 40 years behind other countries in the region and between 50 and 60 years behind the world. Also, 95 per cent equipment is incomplete without technology transfer. State management in the field remains fragmented and loose. The local market has not been organised yet to promote the production.
The industry’s development research activities remain weak. Constraints in design consultancy, technology and equipment have hampered the industry’s capability of manufacturing complicated details. The training of workers has not received appropriate attention yet. As a result, there are fewer trainees and workers in the industry, leading to a shortage of skilled workers.
Development strategy for 2010-2020 periodMechanic products are various, ranging from large-sized products including complete equipment to automobiles, ships, train and motorbikes. Therefore, the specialisation in mechanic production activities is necessary. The development of a sector may result in the development of others, Hao explained.
The biggest challenge is the shipbuilding industry as the Vietnamese Government has set a target that Vietnam will have a fairly developed shipbuilding industry in the region in 2010. Local shipbuilding establishments will be able to build ships of less than 15,000 DWT for the local market. The Government has stated that late this decade, Vietnamese mechanic enterprises would have to meet between 60 and 70 per cent of the demand for small and medium-sized engines, capable of manufacturing 400 horse power engines with a localisation rate of between 30 and 40 per cent.
Hao said that the Ministry of Industry would concentrate resources to promote the modernisation of mechanics, so as to help the industry to strong enough before fierce competition from Vietnam’s WTO accession. Under the development strategy throughout 2010 and vision 2020, Vietnamese mechanics will prioritise eight industries, such as investing in complete equipment for factories, building and repairing ships, assembling and manufacturing accessories and spare parts of automobiles and carriages, agricultural machines, tool machines, electric equipment and construction machines.
Huong Ly
Vietnamese
