Technological content not high yet

According to the Hanoi Department of Industry and Trade, at present, Hanoi has more than 900 supporting industry enterprises, of which about 320 enterprises produce spare parts and components and provide them to key manufacturing sectors such as automobile and motorbike manufacturing, mechanical engineering, electricity and electronics... Among them, many have production systems and products meeting international standards, and entering the production and supply networks of multinational corporations in Vietnam.

Hanoi will support businesses to become suppliers for domestic and foreign customers - photo: Bui Hai

Vice Chairman of the Hanoi Supporting Industries Business Association (HANSIBA) Nguyen Van said that apart from the advantages, domestic supporting industry products in general and Hanoi in particular are still simple, with their technological content at medium and low levels, and of low values. Due to the modest localization rate, the imported components to Vietnam for assembly, manufacturing, production are worth tens of billions of US dollars.

Improving supply capacity for supporting industries

Regarding competitiveness, Van said that domestic enterprises, especially small- and medium-sized ones still lack capital and technology, and even need support in trade promotion. With the support of State agencies, they have to improve their capacity on their own, and their products must meet the standards of placed orders.

Director of Hanel Plastics JSC Nguyen Quoc Cuong informed that Hanel Plastics had to transform itself, increase added value in the supply chain, and build an R&D department for creating higher added value... “The problem is to increase the added value in our products, manufacture more complex products, and avoid dependence on new partners,” Cuong affirmed.

To achieve the goals set in the 2024 Support Industry Development Program, the city will promote connections, support businesses to become suppliers for domestic and foreign customers, and promote foreign investment attraction in this field, hire consultants for implementing smart factory models, connect and support businesses to improve their capacity and meet the requirements to become suppliers.

To accompany and support businesses, the HANSIBA will continue to improve the quality of member businesses so that they can directly produce and supply high-tech and supporting industry products to multinational corporations in Vietnam, at the same time help them integrate into the ASEAN and global supporting industry production chains, focusing on mechanical engineering for the automobile, electronics, defense and civil industries.

To realize these goals, Hanoi will direct its departments, agencies, and localities to connect and support supporting industry enterprises in becoming suppliers for domestic and international customers. It will also promote foreign investment in the supporting industry sector and provide consultation and technical assistance to supporting industry enterprises.

Notably, Hanoi plans to organize two supporting industry trade fairs in 2025, each featuring approximately 200-300 booths from supporting industry enterprises in Hanoi, other provinces and cities, as well as foreign businesses. Investment promotion workshops targeting attraction of both domestic and foreign investment will also be held. Additionally, the city will intensify its communication and promotion of supporting industry activities in Hanoi.

Enterprises participating in the program will receive support to adopt management systems that meet the requirements of global production chains in enterprise and production management. Special emphasis will be placed on research and development, the application of technology transfer, and the innovation of technology for the trial production of components, parts, raw materials, and other materials.

The Hanoi Department of Industry and Trade will take the lead in coordinating with relevant departments, agencies, and units to develop detailed plans for organizing supporting industry trade fairs in 2025. It will assist supporting industry enterprises in improving and modernizing technology as well as in trial production to ensure alignment with the program's objectives.

In addition, the department will coordinate with relevant units to mobilize resources from organizations and individuals both domestically and internationally, alongside the funding allocated for the program. It will also work with the Ministry of Industry and Trade’s Industry Agency and the Industrial Development Support Center of the Industry Agency to effectively implement the Government's supporting industry development program in Hanoi. Furthermore, the department will foster cooperation between Hanoi and other provinces and cities nationwide in implementing the program./.