Opportunities for the supporting industry are on the rise, presenting positive prospects. To turn these opportunities into reality, it's essential to implement synchronized and decisive solutions that address key bottlenecks, thereby assisting businesses in this sector.
Nguyen Hoang, Chairman of the Hanoi Supporting Industry Business Association (HANSIBA) and Vice Chairman of the Vietnam Supporting Industry Association, emphasized that companies in this field are grappling with output pressures, making it difficult for them to invest in production.
'Businesses are seeking support and collaboration from government agencies to engage in the global supply chain, secure orders, and meet green growth targets,' he noted."
Growth in quality and quantity
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Companies showcase their products at the Hanoi Supporting Industry Fair 2024. Photo: Hoai Nam/The Hanoi Times |
Hanoi's supporting industry has experienced continuous growth in terms of numbers, scale, quality, and diversity, according to the Hanoi Supporting Industry Business Association (HANSIBA).
The city has developed industry clusters and specialized groups of mechanical enterprises that enhance competitiveness, particularly in industrial parks focused on precision components for the electronics, automotive, and motorcycle sectors.
HANSIBA noted that Bac Thang Long Industrial Park is home to various electronics mechanical companies, including Buykane (screws), Toho (molds), Aikawa (stamped metal parts), and Standar (aluminum components).
Meanwhile, Noi Bai and Quang Minh industrial parks host numerous automotive and motorcycle businesses, such as Fujico (motorcycle brake discs), Kyoei (frame fixtures), Bright Sakura (exhaust pipes), Armstrong (rims and spokes), and Roki (air filters).
Currently, Hanoi has nearly 1,000 supporting industry enterprises, with over 35% meeting international production standards—the highest rate in the country—enabling them to supply multinational corporations both domestically and globally. However, despite this progress, supporting industry enterprises continue to face challenges related to funding and support policies, HANSIBA’s Chairman added.
Hanoi - a core of Vietnam's supporting industry
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| Local laborers are working at Hanoi Industrial Park. Photo: Pham Hung/The Hanoi Times |
Hanoi has set an ambitious goal to establish nearly 1,000 supporting industry enterprises by 2025. To achieve this, the city is implementing a series of initiatives aimed at empowering its local community of supporting industry businesses.
The Hanoi Supporting Industry Fair 2024 recently attracted nearly 250 booths from domestic and international enterprises, providing a platform for product showcases, trade connections, and contract signings.
Participating businesses expressed hopes that the government and local authorities will introduce more mechanisms and policies to strengthen the supporting industry in Hanoi, positioning it as a cornerstone of Vietnam’s broader industrial sector.
This year’s fair offered companies valuable opportunities to engage with potential partners, fostering breakthroughs in production and business operations.
Notable industrial production companies, including NC Network, Mitutoyo, Cnctech, Tci, Eteck, Automech, Fomeco, and Yamaguchi, displayed high-quality, competitive products across essential sectors such as components, spare parts, precision machining, and industrial machinery, alongside support for high-tech industries.
The event also welcomed nearly 40 purchasing representatives from around the world, participating both in-person and online. Major corporations like Tiger Vietnam Co., Ltd., Panasonic Vietnam, Samsung Electronics Vietnam, and TOTO Vietnam sought partnerships to produce supporting components that meet their specifications.
Nguyen Xuan Thang, Sales Director of TYG International Co., Ltd. (TYGICO), commented on the improving revenue and market demand outlook for late 2024. “Our company has received significant support from regulatory agencies and industry associations, enhancing our operational efficiency and strengthening partnerships,” he noted.
As a company specializing in importing stainless steel for mid- to high-end interior and exterior decorations and elevators, TYGICO has seen positive advancements in administrative procedures related to import-export and taxes, facilitating smoother business operations.
According to the Hanoi Department of Industry and Trade, the Hanoi Supporting Industry Fair has been a key event since 2017, focusing on the supporting industry. The city aims to bolster enterprises by promoting products, encouraging investment, and enhancing trade and export activities. The goal is to strengthen supply chain connections within the Capital Region and integrate Hanoi businesses into the global supply chains of multinational corporations operating in Vietnam and beyond.
Hanoi is also developing technical infrastructure for 27 out of the 43 industrial clusters established between 2018 and 2020, creating a conducive environment to attract both domestic and foreign investment for production and business operations.
The city is further organizing activities to connect local businesses with domestic and international production and supply chains, particularly with enterprises in Japan, South Korea, China, and other nations involved in high-tech component manufacturing, including aerospace and electronics.
These efforts aim to attract investment, encourage technological innovation, and promote the application of scientific advancements, according to the Municipal Department of Industry and Trade.
Moreover, companies are expanding their export activities and entering distribution networks in Japan, South Korea, and China, leveraging the advantages of various trade agreements.
Nguyen Kieu Oanh, Deputy Director of the Hanoi Department of Industry and Trade, emphasized that with the rapid pace of development, Hanoi is on track to meet its goal of having 1,000 supporting industry enterprises by 2025. She added that 40% of these enterprises meet international production standards, positioning them to participate effectively in global production networks of multinational corporations in Vietnam.
“This growth is essential for advancing the industrial sector and contributing to the economic development of the capital and the country,” Oanh underlined.
Khanh Khanh