The most important ‘pleading’ that many mechanical enterprises want is the need for a stable and transparent policy because when doing so, businesses can actively adjust the sustainable development strategy, avoiding the previous situation is “the key” and then the “pilot” makes it difficult for the industry to be effective.
Engineering is considered to be the “backbone” industry of the economy, the foundation of providing tools and means of production as well as creating productivity for most fields from production to consumption. However, the fact is that although the geographical area is quite large, Vietnamese mechanical enterprises are facing the risk of falling behind, lacking competitiveness in the “home ground”. Therefore, it is necessary to have the “right” view with appropriate steps for the mechanical industry when contributing to the achievement of the country’s industrialization and modernization goals.
Difficulties of mechanical enterprises
According to calculations of experts, the total demand for our country’s machinery and equipment from now to 2030 is estimated at 350 billion USD. That is not including the supporting industry market if it is able to participate in the global value chain, the development space is much bigger. Thus, only the capacity of the domestic mechanical market is enough to “raise” the enterprise. According to the Vietnam Association of Mechanical Businesses (VAMI), if there is a reasonable market policy, the Vietnamese mechanical engineering industry is fully capable to meet up to 70% of market demand by 2030.
Regarding the market, Deputy Director of Industry Department (Ministry of Industry and Trade) Pham Tuan Anh shared that even in the domestic market, mechanical enterprises are also difficult to participate in investment projects to install equipment for a number of industries, such as steel, chemicals, energy, etc. The first reason comes from free trade commitments, causing many of the domestic protective tariff barriers to be removed, while the competitiveness remains have not improved. In addition, technical barriers in this area are not strong enough to protect the domestic market from imported goods. Mechanical enterprises have been weak, now lack of output for products, so they have no conditions to accumulate and invest in technological innovation. This is a vicious cycle in the development of Vietnam’s mechanical engineering industry for many years without any satisfactory solution.
Besides, the “disease” lacking of investment capital in the past 20 years has not been solved, making the mechanical industry no longer a “hot” profession. The reality of skilled workers who are trained and mechanic is increasingly lacking because they have to worry about livelihoods, which affects the quality of labor resources of the industry. Along with that is the policy for the mechanical industry is still unstable or businesses have received support but are not adequate as prescribed.
Due to the large capital requirement, long recovery time, the mechanical industry needs a good view of the market. Once there is a market, surely many businesses are ready to embark on technological innovation to improve their level and production capacity. So, how to revive the domestic mechanical industry to develop to the full potential?
Create a ‘locomotive’
One of the effective ways is the formation of locomotives to attract surrounding satellites in order to limit the dispersion of resources, as a platform, to support businesses for mutual development.
Built in Chu Lai Open Economic Zone (Quang Nam), the automotive mechanical industrial zone of Truong Hai Auto Company (Thaco) has a total area of 650 hectares with six automobile assembly and manufacturing factories and 14 factories. Production of spare parts and components with modern equipment lines transferred from partners in Europe, Japan, and Korea.
The director of the Supporting Industry Division of Truong Hai Doan Dat Ninh said that the Mazda car factory of the Company is now one of the most modern factories in Southeast Asia, meeting the quality requirements of the next-generation cars. new in the direction of less fuel consumption, energy use and environmentally friendly, 80% automation assembly line … Especially, the factory applies a production management system based on the digitization platform, connect with automatic production lines throughout the factory with information throughout the value chain from ordering to delivery according to customer specific requirements, in line with the spirit of the 4.0 industrial revolution …
Similarly, in the field of industrial construction, many large projects implemented by domestic contractors have been highly appreciated for quality and progress. The State boldly assigned large domestic enterprises to act as EPC contractors of the project has achieved many successes.
There are two hydropower projects Son La and Lai Chau. Here, domestic contractors have exceeded the annual progress, bringing in tens of thousands of billion VND in benefits. Or success at Vung Ang 1 Thermal Power Plant project, which is invested by Vietnam Machinery Installation Corporation (LILAMA) as EPC contractor, has built a team of officials, engineers and workers who are professional thermal power workers … In the long term, he can participate in many projects in other fields such as manufacturing synchronous equipment, railway, subway …
Thus, if properly and methodically invested, the aforementioned locomotives will step by step build their role and position as well as reshape the development of the mechanical engineering industry towards higher specialization. limiting the dispersion of resources, ensuring stable production.
Vice Chairman cum General Secretary of Vietnam Association of Mechanical Enterprises (VAMI) Nguyen Chi Sang said that if domestic enterprises can compete with big FDI companies, domestic enterprises will “never win”. Therefore, in all industries, especially mechanical engineering, it is necessary to build a number of leading enterprises, with capital and technical capabilities, thereby gradually attracting small businesses to “follow” for development.
Need to stabilize policies
Creating a market through locomotives is necessary, but more importantly, the mechanical policies must be stable and long-term.
The story from Quynh Lap 1 and Quang Trach 1 thermal power plants is still a typical example of the inconsistent policy. According to Mr. Nguyen Chi Sang, it is necessary to well implement the set policies. Specifically, for the two above projects, domestic bidding for domestic enterprise bidding packages that can be undertaken under the regulations must be done and bravely assigned to reputable domestic contractors for construction. In the long term, it is necessary to continue bidding for the items mentioned in Decision 1791 for other thermal power projects. This helps improve the localization rate and qualifications of Vietnamese businesses.
On the basis of Vietnam’s mechanical engineering industry can do well with many types of products, but the country’s financial resources are limited, the competent authority should focus on reviewing a number of key mechanical products with schools and conditions for good development to have more focused support policies such as shipbuilding, synchronous equipment manufacturing, electrical equipment, automobiles, movers, agricultural machines, avoiding macroeconomic policy. Good tissue, but inefficient implementation. In addition, for projects using budget capital, it is necessary to have sanctions that require the use of materials and equipment manufactured by Vietnam up to standards.
According to VAMI Chairman Dao Phan Long, these products are largely public investment, so it is necessary to have policies to reserve orders first for domestic mechanics like how many other countries have done. rigor. The State needs to calculate and support domestic enterprises to have many orders and markets, thereby accumulating conditions for development investment. In addition, it is necessary to build a synchronous policy system to minimize the import of outdated used technologies, machines and equipment, consume energy and cause environmental pollution. “If they cannot do these things well, domestic mechanics will be very difficult to have breakthrough opportunities in the near future,” Mr. Long emphasized.
Particularly for the shipbuilding industry, a summary of 10 years of implementation of the Vietnam Sea Strategy to 2020 shows that this field is not commensurate with the potential, the lack of quality fleets to exploit well the economic strength. sea. Although up to this point, the shipbuilding industry is no longer identified as a key industry, the fact that the shipbuilding industry still plays a very important role.
According to General Director of Dung Quat Phan Tu Giang Shipyard, the demand for international transactions between the world economies is increasing, so the maritime industry will have more room for growth. including “acting ground” for the shipbuilding industry. However, at present, old problems still surround many shipyards, so it is necessary to have mechanisms to help enterprises of the shipbuilding industry carry out reforms or even bankruptcy so that the enterprises can continue to do so. This enterprise can return to normal production and business activities. Shipyards with invested infrastructure, machinery and equipment, with a team of technicians and skilled workers are a big asset of the country, if the shipbuilding enterprises are flooded. In the old debt, not being able to participate in production and business activities would be a big loss.
In order to promote the development of mechanical enterprises, especially small and medium-sized enterprises (accounting for the majority), additional support in capital, land, interest rates … is very important. However, sometimes the stability of new policies is what many businesses are interested in. Accordingly, there is a need for more radical and stronger changes in directing and organizing the implementation of regulations in mechanical development to help businesses develop in the right direction, with a well-established business strategy and vision. long-term to develop better in the current trend of integration.