The engineering sector, one of Vietnam’s key industries, fetched an export value of 32% against the total value last year, exceeding the set target of 30%.
Nguyen Tang Cuong, President of Quang Trung Group which specializes in manufacturing components and spare parts for hydropower works, said Vietnam’s mechanical industry mainly focuses on assembly.
Cuong added that many enterprises like ours have increased investment in technology to catch up with regional partners. The domestic engineering industry hasn’t grown on par with the government’s development strategy due to limited human and financial resources.
|Vietnam's engineering industry is finding ways to develop and integrate into the global economy. (Photo: VCCI)
According to Nguyen Chi Sang, director of the National Research Institute of Mechanical Engineering, the ratio of mechanical production value increased from 15% in 2002 to 25.1% in 2010.
With the free trade agreements that Vietnam has signed and will sign, the domestic mechanical engineering sector is finding opportunities to expand its export market, access advanced technologies, and improve its technological level.
But to these ends, the sector needs to focus its investment and identify industries relevant to its needs while taking advantage of state support for renovating production technology and applying advanced management models.
Truong Thanh Hoai, director of the Heavy Industry Department of the Ministry of Industry and Trade, said “we’ve submitted to the government several mechanisms, some of which have already been approved, to develop the mechanical industry. For instance, the localization policy for thermal power plants will give us a major manufacturing mechanics market. Once the projects in the field are successfully piloted, Vietnamese mechanical firms will improve significantly.”
Vietnam’s target is to meet more than half of domestic demand by 2050, accounting for 21% of the structure of Vietnam’s industries.