To elevate the position of auxiliary industries

 In recent years, auxiliary industries in Binh Duong has developed and gained remarkable results in a number of fields, especially textiles, mechanics, electrical and electronic equipment, etc. Thereby, improving the localization rate for industrial products and reducing the dependence on imported materials.

Textile and apparel is one of the industries that desperately needs domestic raw materials to stabilize production, especially in the current epidemic situation.

 Currently, along with the whole country, Binh Duong has 5 key industrial product types, which are facing the risk of insufficient raw materials for production: Shoes, textiles, textile fibers, electronics, machinery and spare parts. According to Ministry of Industry and Trade, domestic raw materials for these industries are able to meet 30-60% of demand (depending on the order), when the epidemic occurs, enterprises can find more materials from domestic sources and other countries.  But in fact, supporting industries to the above industries are also facing a shortage of raw materials and are struggling to find sources from other countries to compensate, especially when Vietnam's largest markets of raw materials import, such as China, Korea, Japan, contain fluctuations and have scarce supply.

According to the leader of Hoa Sen Group Joint Stock Company, the situation of Covid-19 has affected import activities of enterprises. Enterprises are not able to import goods from China. Besides, due to the chain reaction, some import markets of this company, such as Taiwan and India, do not have goods to export to the company, because these countries also import steel materials from China to produce hot rolled steel sold to Hoa Sen.

It can be seen that supporting industries have a very important role in the industrial development, is the force to directly create added values and improve the competitiveness of main industrial products. Therefore, Binh Duong has focused on developing and forming raw material manufacturing industries for industries such as textile (fiber, cloth weaving, zipper, dyeing, and finishing textile products), mechanics (metal, metal products, machinery and equipment, and accessories for automotive industry), electricity - electronics (electronic components, electric wire equipment, optical fiber) ...

In order to prioritize the development and improvement of auxiliary industries, Binh Duong also researches and develops a separate industrial park in Bau Bang district on 1,000 hectares, prioritizing attracting investment in supporting industries, especially foreign investment projects. Currently, the province is building a list of incentive policies to attract investment in auxiliary industries.

Mai Hung Dung, Permanent Vice Chairman of Provincial People's Committee, said that the development of auxiliary industries was an inevitable trend, not only serving industrial production of Binh Duong and the whole country but also aim for exporting and participating in the global value chain. This will create great motivation for Binh Duong industrial production to speed up and develop sustainably in the new period. “In order to develop the industry sustainably and effectively, Binh Duong has been actively supporting enterprises to develop supporting industries, helping to increase the value of industrial products produced by domestic enterprises”.

“In the coming time, Binh Duong will continue to prioritize the development of industries with high added value content, gradually increase the localization rate of products... In particular, focusing on prioritizing the development of supporting industries; soon completing the planning for raw material areas and supporting industry areas; continue to create favorable conditions for investment attraction, production expansion, and projects of supporting industries”, Mr. Dung said.

Reported by Ngoc Thanh - Translated by Ngoc Huynh

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