Developing supporting industries for self-reliance

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.

Currently, supporting industries in Binh Duong province has not yet met the demand for raw materials for production in the province and the whole country in terms of quantity and quality. Therefore, the province has been attracting investment in the development of supporting industries to gradually become self-sufficient in domestic sources of raw materials, components and accessories.

Currently, Binh Duong is integrating more and more deeply into the international economy, participating in the supply chain as well as the global value chain. Therefore, the development of supporting industry is considered one of the top priority policies of the province to stimulate the development of the industry, contributing to accelerating the process of industrialization and modernization of the province. The province has also developed and issued a program to develop local supporting industries. Specifically, the province focuses on building increasingly modern and synchronous infrastructure of industrial parks, forming science and technology industrial parks, encouraging investment in developing supporting industries in the manufacturing, assemble machinery and electronic equipment to serve the local high-tech industry development strategy; step by step diminish manufacturing sectors which are labor intensive and causes environmental pollution. In particular, the province has also approved a project on developing mechanical industry in Binh Duong province to 2025, with orientation for 2030.

Accordingly, the goal of the project is that by 2030, Binh Duong will become one of the strong mechanical centers of the region, be capable of manufacturing all kinds of specialized machinery and equipment, mechanical products that meet international standards, replace imports and serve for export, capable of producing high-tech mechanical products in line with the development trend of the fourth industrial revolution.

While many large international investors start to move the supply chain to Vietnam, Binh Duong is one of the selected destinations, which has created many opportunities for the development of supporting industries. Besides foreign investors, recently Truong Hai Group (THACO), a domestic investor, has also signed a memorandum of understanding to build a mechanical supporting industrial park in Binh Duong province, with and estimated scale of about 26 trillion VND (equivalent to more than 1 billion USD). This is considered a "leading" enterprise in supporting industries in Vietnam in general. Supporting industry development will be a sufficient condition for the development of industry clusters, effective tools to enhance competition, technological innovation and economic development. According to THACO Group Chairman Tran Ba Duong, "Supporting industries are the industry that supports the main industries, but without this industry, other industries cannot exist".

Reported by Trung Dong - Translated by Ngoc Huynh