Binh Duong Province is one of the leading provinces in industry development; thus, supporting industries are being paid much attention to to promote other industries. Recently, Provincial People’s Committee (PPC) has implemented a project to orient development of supporting industry in Binh Duong Province. Righteous view of supporting industry role, the project will develop supporting industry to meet the demands of materials for other industries during industrialization.

 

Products of supporting industry in Vietnam is underdeveloped and dependent on importation or FDI enterprises. In this photo: Production of heat transmission bars in VSIP – Binh Duong Province.

In the past years, economic growth in Binh Duong Province is of 14.65% a year with strong transition into industry and services. Growth of industrial GDP contributes to local economic growth; however, industry development in Binh Duong only falls short to processing and assembling. Local supporting industry has not yet satisfied the needs of materials for production in terms of quality and quantity. In such perspective, supporting industry is facing difficulties and obstacles as the whole nationwide. In Vietnam, supporting industry is only limited to production of motorcycles, electronics, household electric appliances, and so on in sectors where foreign enterprises in joint venture build spare parts factories. In the meantime, other types of raw materials and spare parts are imported.

Japanese specialists asserted that supporting industry is underdeveloped in Vietnam for not meeting international standards in terms of quality, models, and specifications. Taking wine making for an example, Vietnamese enterprises can only supply cardboard boxes and have to import bottles. Canon also lost plenty of time seeking for suppliers of supporting industry of which 90% are from foreign enterprises.

On the other hand, supporting industry has only started in Binh Duong since 2005 which was promoted by foreign investment. Theoretically, supporting industry in Binh Duong Province is now at the first stage of the 5 stages in total. Thus, everything is limited at processing and assembling. Besides, supporting industry is considered as other industries in terms of policies. And, supporting industry is dependent on general development policies of the State and locality by exploiting advantages of geography and easy-going administrative procedures.

The reasons stood that industry in Binh Duong Province is mainly dependent on FDI with mostly importation of materials. Last but not least, supporting industry development in Binh Duong Province has not specifically planned with supporting policies.

Therefore, it is necessary to develop supporting industry to overcome obstacles of industrial development horizontally in using labor force of low added value in the face of pressure of sustainability of development.

Reported by Thanh Son – Translated by Vi Bao