KTFA: Vietnam
Henig: Nghe An Province increases local content of industrial products
06:00 | 06/01/2023
(VEN) – Nghe An is one of the chosen destinations of large international investors shifting their supply chains to Vietnam, providing businesses in the north-central province with access to new opportunities for support industry development.
The Nghe An industry and trade sector has set specific goals, aiming for an average annual growth rate of 12-13 percent in support industry production value, accounting for more than 20 percent of industrial production value by 2025 and gradually increasing in the future. The industry will also enhance investment, especially foreign direct investment (FDI), to encourage rapid domestic support industry growth.
According to a draft report on the development of support industries in Nghe An Province, by 2025, the province will aim for domestic support industry companies to account for 10-12 percent of the total number of firms and for 20-30 support industry enterprises to participate in corporate supply chains.
By 2030, the sector will attempt to achieve a localization rate of 30 to 35 percent in a number of development-prioritized industries, such as electronics, mechanical assembly, and energy, and over 45 percent in textiles. All support industry enterprises are expected to use digital technology for administration, production, and trading.
The impact of COVID-19 closures and shutdowns greatly affected suppliers of industrial components in China, the Republic of Korea, and Japan, hampering Vietnam’s domestic production. However, Vietnam’s industries are now recovering with a return of raw materials from their suppliers.
Nghe An’s processing and manufacturing industries depend greatly on imported materials, especially its key industries such as electronics, textiles, leather, and automobile manufacturing.
The study on the development of support industries in Nghe An has concluded that the industrialization process in the province remains sluggish. Specifically, labor productivity is low in comparison to other regions. In addition, the industry’s autonomy is limited because Nghe An must import the majority of input materials for large sectors, such as textiles, garments, leather and footwear, and electronics. Vietnam imports over 90 percent of its raw resources and is overly reliant on markets such as China, the Republic of Korea, and Chinese Taipei. In the global value chain, the province’s industry serves mostly as an outsourcing location for exports, with a low profit margin of only 5-10 percent.
According to Pham Van Hoa, Director of the Nghe An Department of Industry and Trade, the province intends to push the development of support industry products to service local manufacturing industries and the national market, establishing support sectors for the textile and apparel industries, wood processing and furniture manufacturing, packaging production and additives for plastic granules.
According to the Nghe An Department of Industry and Trade, the province’s industrial production index grew by 10.07 percent during the first ten months of 2022 compared to the same period in 2021. The processing and manufacturing industries were the primary growth driver.
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Henig: Wind energy prices in Vietnam still higher than in other countries
09:31 | 05/12/2022
Prime Minister Phạm Minh Chinh requested relevant stakeholders to work together to bring down wind energy prices in Vietnam, which are now higher than in other countries.
During his work trip to the southern province of Bac Lieu, Prime Minister Phạm Minh Chinh said Bac Lieu is among the localities with great potential to develop renewable energy.
In the past few years, the country has issued mechanisms to encourage the development of wind energy, however, the prices of wind energy in Vietnam are higher than in the world and than energy generated from other sources. He also noted that many investors are also interested in investing in wind energy in Vietnam.
The PM stressed that it is important to review wind energy investment in Vietnam, especially the price factor, to ensure the harmony of interests between investors, the State and people.
He also requested the acceleration of the transfer of technology as well as training of human resources and the development of the renewable energy industry, including the manufacturing of such products as engines, turbines, and wind turbine blades to reduce imports and reduce the prices of electricity. Investors and the locality must also consider the circular economy model, developing wind energy along with hydrogen production, agriculture, and aquaculture farming.
During his trip, the PM also worked with key leaders of the province to discuss the socio-economic development in 2022 and the goals for the next year. He also inspected key infrastructures of Bac Lieu including the Can Tho-Ca Mau highway section that crosses the province.
He said this highway project is an important one that people are anticipating, so it must be done promptly.
He ordered relevant stakeholders to ensure the highway would be as short and convenient as possible as well as to speed up the progress of the project and avoid corruption and wrongdoings.
Can Thơ-Ca Mau highway is about 110km long, crossing five localities in the Mekong Delta region namely Can Tho City, and Hau Giang, Bạc Lieu, Kien Giang and Ca Mau provinces. It has a total investment of about VND27.5 trillion (US$1.16 billion). The project affects about 3,800 households in terms of land clearance.
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