Over the past years, Binh Duong had a breakthrough development in terms of industrial manufacture, helping it become one of the country’s bright spots on socio-economic development. But, the local manufacturing industry needs to create more breakthroughs towards sustainable development in the coming time.
Great efforts
Binh Duong’s processing industry reached a robust growth over the past time while manufacturing still got dimmed with total value only accounting for 10% of the province’s total industrial production value.
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Motorcycle production of Kymco factory at TDM city-based Song Than 3 IP
The province has also made efforts in calling for enterprises to make investment in manufacturing sector. Upon this, the sector has got thriving with a series of large-scale projects in recent years. Some effective projects in this field include Core Electronics Co.Ltd. at TDM city-based Dai Dang Industrial Park (IP), Keiden Vietnam Co.Ltd. under Japan’s Keiden Group at Ben Cat town’s My Phuoc 2 IP with total investment capital of US$3.7mln…
Noticeably, Kymco factory capitalized at over US$20mln was put into operation in the province one year ago. This is seen as one of typical projects in the local manufacturing industry. According to Wang Ting-Yi, General Director of Kymco Vietnam Co.Ltd., the factory was equipped with the most modern machines in all steps of the manufacturing process,
Possibly affirming, thanks to the local proper orientations in investment attraction and industrial development, manufacturing sector here has gained initial results. But, the sector needs to make breakthroughs at the local demand for development in the coming time.
Synchronous policies needed
Since early this year, the whole province has absorbed US$875.5mln in FDI capital from 87 newly-licensed projects and 46 extra-ones. The whole province has so far lured 2,674 FDI projects with a total registered capital of US$24.5bln. Of the total figure, the amount of capital pouring into manufacturing and real estate is very great.
In fact, manufacturing sector has taken the lead in foreign investment attraction in Vietnam in recent years. In Q1 2016, foreign investors made investment in 18 fields, in which manufacturing received the most investment with 216 newly-registered projects. The sector’s newly registered and increased capital during the period was US$2.9bln or 72.2% of total FDI capital. The sector last year lured 1,012 newly-registered projects with newly registered and increased capital of US$16.4bln or 68% of total FDI capital.
Possibly seeing, FDI capital in Vietnam has focused on manufacturing sector in recent years. But, the sector still needs more FDI capital for better development. Proper and effective policies are also needed to brace up investors making investment in the sector.
Dao Phan Long, Vice-Chairman of the Vietnam Association of Mechanical Industry proposed that the State needs to map out a synchronous mechanism with concrete development planning on mechanics in particular and manufacturing in general. Localities also need to selectively absorb investment projects while being determined to refuse those with low technology and added value, high risk on environmental pollution…
Tran Thanh Trong, Chairman of provincial Mechanical Electricity Association said that the province’s manufacturing sector achieved a robust growth over the past years, but did not match with its potential, making it be put at disadvantage right in domestic market. For better development, the sector needs to enjoy more effective policies to absorb more investors…
Vietnam’s mechanical sector has set a target of meeting 45%-50% of domestic demand in 2020 and 60% in 2030. With such target, according to experts, Vietnam needs to bend on making key products, including agro-forestry and fishery machines, electrical-electronic equipment…while giving priority to multinational corporations investing in large-scale mechanical manufacturing.
Reported by Khanh Vinh-Translated by K.T
