Hanoi Powering up Industry with Key Products

11:21:39 AM | 14/5/2019



Hanoi’s accelerated development of key industrial products has been creating ripple effects, bringing great added value and sustaining socioeconomic development. Vietnam Business Forum Magazine has an interview with Mr. Nguyen Doan Toan, Vice Chairman of Hanoi People’s Committee, on this issue. Ha Thanh reports.

Could you please tell us the city’s vision and orientation for key industrial product development in the present time?



The Hanoi Key Industrial Product Development Program, launched in 2005, has become a major policy in the city’s strategy of asserting its leading and central position and role.
In the 2005 - 2017 period, Hanoi had 59 products made by 46 manufacturers recognized as key industrial products, which generated total revenue of nearly VND60 trillion (US$2.6 billion), which rose 10 - 11% annually. The export value of key industrial products accounts for 9 - 10% of the city’s total export value.

To enable industry to catch up with new-generation international economic integration requirements, the Hanoi People’s Committee launched the Key Industrial Product Development Project to 2020, with an eye to 2025. According to the project, selected key industrial products are high-tech products that match the list of high-tech products encouraged for development under the Prime Minister’s Resolution. Selected products must have high export value, meet growth, export and production level criteria adopted by the city. The city prioritizes and encourages products made by handicraft producers or startups to complete for being recognized as key industrial products with the aim of (i) accelerating investment and trade promotion and business support; (ii) improving the investment and business environment; (iii) enhancing capacity, competitiveness and support for businesses to develop science and technology; (iv) and fostering human resource development.

The Key Industrial Product Development Project has helped realize Program 03 on “Promoting economic restructuring, improving competitiveness, actively integrating into the international economy, and developing rapid and sustainable economy” adopted by the Municipal Party Committee. The Program aims to develop key industrial products of strong, stable growth, high added value, environmental protection and traditional identity that also catch up with market trends, pose strong competitiveness and sustainable development, belong to priority industries (new material, mold manufacturing, electronics - information technology, precision engineering, etc.), fundamental industries and export-driven industries. Chosen products must have strong ripple effects, significantly contribute to total industrial production value and fit into the city’s socioeconomic development strategy.

Accordingly, Hanoi-based large-scale enterprises have focused more on scientific and technological research. The city is currently home to 42 out of 203 scientific and technological companies in the country. These models are developed from commercialized research results and expected to increase gray matter in local products. Besides, hundreds of start-up projects are positioning brands, seeking investment funds and searching for management experience support to pick best products this year and beyond to get qualified for the city's key industrial products.

At the same time, to enable its key industrial products to conquer domestic and foreign markets, the city is pursuing mechanisms and policies to develop supporting industries, and speed up communications, marketing and trade connection in domestic and foreign markets. As a result, Hanoi aims to have more than 80 key industrial products by 2020 whose revenue accounts for 33-35% of local industrial production revenue and achieves annual growth of 9 - 10 per cent annually in the 2018 - 2020 period. Their export value will make up 12 - 14% of the city’s total exports.

So, what are the solutions to develop key industrial products? What are priority tasks for the time being?

To develop key industrial products, the municipal government assigned six major solutions and tasks to municipal departments, district government, business associations and enterprises to take part in: (i) Reviewing, promulgating and implementing mechanisms and policies; (ii) promoting investment, trade and business operations; (iii) improving the investment and business environment; (iv) communicating and honoring key industrial products and enhancing the prestige of the Key Industrial Product Development Program; (v) raising capacity, competitiveness and support for enterprises to develop science and technology; (vi) and developing human resources.

In the current context, Hanoi gives priority to fulfilling specific tasks such as accelerating investment and trade promotion; improving the investment environment, reducing the time to tackle administrative procedures for businesses; supporting enterprises to develop science and technology, human resources, corporate capacity and competitiveness; supporting them through energy audits under the Energy Saving Program, and assessing cleaner production in industry.

What is the distinctive value of key industrial products of Hanoi City, especially in added value of products and brands of manufacturers?

In 2018, the city had 46 manufacturers with 73 products registered to join the Program. The Hanoi People’s Committee recognized 61 key industrial products and all Top 10 key industrial products belonged to prioritized industries which have strong spillover effects, high added value and strong competitiveness on domestic and foreign markets. Selected products were made on regional level production lines and ensured environmental standards. 61 chosen key industrial products generated total revenue of VND40,000 billion (28.4% higher than the previous year), accounting for 35.2% of the city's industrial production value and 7.7% of the city’s gross regional domestic product (GRDP); earned export value of over VND10 trillion (up 74% year on year). 12 companies were named in the Top 500 Vietnamese enterprises and 15 companies led the Hanoi industry with annual revenue of over VND1 trillion.

Typically, some manufacturers boasted annual revenue of more than VND4 trillion, including Vicostone Joint Stock Company and Panasonic Vietnam Co., Ltd. Some took the lead in technological research and development (R&D) such as Son Ha International Corporation and Rang Dong Light Source and Vacuum Flask Joint Stock Company. Some led software production and information technology, like FPT Software Co., Ltd and VNPT Technology Joint Stock Company under the Vietnam Posts and Telecommunications Group (VNPT).

Program participants have made efforts to apply modern scientific and technological advances to production, apply world-class management systems and raise production levels. Certified key industrial products will carry the program identity to add more product competitiveness, promote traditional values, lead their peers, affirm product prestige, and enhance brand value of businesses in the market and the business community. For example, the product of Dong Anh Electrical Equipment Corporation - Joint Stock Company (EEMC) has made Vietnam one of 10 countries in the world to successfully design and manufacture 500kV transformers, or the product of Hanoi Industrial Textile Joint Stock Company (Haicatex) topped the world in geotextile fabric, or the product of Export Mechanical Tool Join Stock Company (EMTC) is trusted by large automobile and motorcycle manufacturers in Vietnam to sign long-term cooperation contracts.

Do you share or convey any message of government to businesses with certified key industrial products in particular and the business community in general?

The development of key products has revealed the interest, support, and cooperation of the Hanoi government for local enterprises. The program aims to honor businesses and, at the same time, disseminate typical industrial production models to foster local industrial development in the spirit of “facilitating, acting and developing together” with enterprises in the process of international economic integration; honor businesses which have been constantly innovative, made efforts to apply advanced science and technology to production for better performance, intellectual value and environmental friendliness and industrial product guidance. This program also helps local enterprises expand the domestic market, increase exports and make important contributions to local and national socioeconomic development.



Thank you very much!



Hanoi targets to have over 80 key industrial products by 2020.