Many enterprises believe that so as to deeply develop processing and manufacturing industries, the focal promotion of establishment and restructuring of connection series should be made to service production activities.
At Tan Binh Industrial Park, promotion has been made for supporting industries and development of value chains. In this photo: Production is on-going at Trung Nam Co. Ltd. in Tan Binh Industrial Park.
Urgent needs
In the first quarter of 2021, beside enterprises having stable production activities, 255 new industrial enterprises were put into operation. The industrial production index was estimated to increase by 6.9% over the same period in 2020. In particular, the processing and manufacturing industry continued to play a leading role in the growth of the economy with an increase of 6.9%. This is the industry that plays a key role of promoting the overall growth of the whole industry by accounting for 98.9% of the total industrial production value of the province. However, the situation of importing goods during the difficult epidemic period posed the problem of forming value chain, especially in industrial parks to facilitate production development and improvement of competitiveness in goods production and exportation.
Phan Le Diem Trang, Deputy Chairman of Binh Duong provincial Textile and Apparel Association, said that the current difficulty of the industry is the high rise in importation of raw materials. There should be many domestic raw material enterprises qualified to participate in the supplying chain to save costs, lower product costs and meet the origin standards specified for garment products.
As a locality of the second largest wood exportation proportion in the country (according to Binh Duong Furniture Association (BIFA)), the industry is lacking space to expand production and is lacking close linkages among the enterprises. If there is an industrial park specialized in furniture, the gathering and specialization in production will be promoted, prompting large production with a closely linked process. “Most importantly, focusing on industrial parks will help businesses in the furniture industry promote linkages, form production chains, develop modern furniture industries, and promote supporting industries,” Dien Quang Hiep, Chairman of BIFA affirmed.
Talking to us, Nguyen Quoc Thai, Deputy General Director of Tan Binh Industrial Park Joint Stock Company, said he understood the needs of enterprises in choosing industrial zones with supporting industries. In the 2nd stage, in addition to investing in modern infrastructure systems, the policy of the industrial park is to attract supporting industries, terminal services, and transportation systems etc. to attract and facilitate investors in Tan Binh Industrial Park.
Developmental opportunities
The Vietnam Chamber of Commerce and Industry (VCCI) proposed that it is necessary to develop policies to develop industries and supporting services in the direction of less dependence on external supply and of reducing the long-standing outsource. This also contributes to the creation of added value and a better position for Vietnam in global supplying chains.
Dau Anh Tuan, Head of Legal Division (VCCI) said: “The Covid-19 epidemic is offering Vietnam opportunities as major partners such as Japan, the US, EU, Australia etc. are looking for safe destinations to move part of the supplying sources for their chains out of China. Gaining a number of new-generation free trade agreements, Vietnam is more likely to be selected if the government has clear policies and objectives to encourage and create conditions for Vietnamese enterprises and attract investments from other partners in the prioritized industries and fields.”
For Binh Duong, in the new stage, the province is determined to promote the development of supporting industries and focus on restructuring chain links to serve production operations. Careful review and appropriate solutions are focused to strongly promote and facilitate all stages in the investment, production and trading process from raw materials, inputs, to production processing and distributing intermediaries, markets, and consumable products. According to Nguyen Thanh Toan, Director of Department of Industry and Trade, for the time to come, the department will continue to implement solutions to develop and maintain the speed of industrial growth. The implementation and investment into the construction of infrastructure of industrial parks and clusters should be sped up according to the planning and developing of supporting industrial clusters.
Reported by Tieu My – Translated by Vi Bao
