Mechanical engineering sector to lift exports by 2020

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Vietnam’s mechanical engineering industry is striving to apply advanced technology, produce high-quality products meeting international standards and join the global value chain by 2035. (Photo: vneconomy.vn)

The targets were set out in a strategy approved by the Prime Minister for the industry’s development by 2025, with a vision to 2035.

The industry will also focus on the efficient use of energy, maintaining competitiveness during international integration and establishing a disciplined, professional and qualified work force that is proactive in conducting research, designing products and manufacturing.

Exports are expected to account for 35 percent of the total production by 2020. This proportion will increase to 40 percent by 2030 and 45 percent by 2035.

Under the strategy, the focus will be on developing automobile engineering, agricultural machines, industrial products and electronic appliances to meet the basic domestic demand, as well as create volume for export. Meanwhile, engineering support companies will be established to provide supplies for production units to join the global value chain.

Relevant authorities must complete mechanisms to support the mechanical engineering sector, by giving preferential taxes and simplifying the investment procedures. The policies must aid the support industry and encourage participation in the production value chain, as well as in the development of domestic production.

The PM has ordered the development of basic materials and advanced technologies for the sector.

The sector must also attract powerful multi-national corporations to invest in the country’s big engineering projects. Investment promotion should be prioritised for small and medium enterprises, especially those in the support industry.

The State will support enterprises to renew technology and their production facilities, as well as to apply advanced technology and management in production to improve efficiency in the use of energy and input materials, product quality and competitive ability. It will also support businesses in diversifying products, as well as building and developing brands.

The State has a credit policy for mechanical equipment manufacturers who want to develop their production and business. It will establish an information system for the mechanical engineering sector to have a database for state management agencies and enterprises.