Illustrative image (Source: vietnamnet.vn)Binh Duong (VNA) – The southern province of Binh Duong has carriedout a lot of mechanisms and policies to help enterprises operating in thesupporting industries solve difficulties and grow further.
Facing difficulties in materials during the COVID-19pandemic, businesses now acknowledged the importance of using the supplies ofdomestic firms.
Although the capacity of Binh Duong’s supporting industrysector improves remarkably, it only meets 40-45 percent of demand of thegarment and textile and footwear sectors, 10-20 percent of under-nine-seat car manufacturing and assembly, 15percent of electronics, computing and telecommunications, and five percent of dedicatedelectronics and high technology.
Binh Duong, therefore, is facilitating the development ofsupporting industries in order to meet local production needs and reducereliance on imports.
Supporting industries not only played a very important rolein the industrial development process but also helped improve the added-valueand competitiveness of major industrial products, Director of the provincialDepartment of Industry and Trade Nguyen Van Danh said.
Binh Duong province has formed industries producingmaterials for garment and textile, leather and footwear and components forengineering, machinery and equipment as well as electronic sectors. That helpedto increase the localisation ratio for industrial products while reducingdependence on imported materials, Danh added.
Statistics from the department revealed that the province isnow home to 2,277 businesses involved in supporting industries, including 442in the garment and textile sector, 172 in leather and footwear, 953 in woodprocessing and 710 engineering firms.
According to Vice Chairman of the Binh Duong People'sCommittee Mai Hung Dung, the province will continue to improve the investmentenvironment and encourage the development of each group of supporting industryproducts.
It will also focus on establishing industrial zones andclusters to produce spare parts and components for industries, and supportsmall- and medium-sized enterprises to participate in the production ofsupporting products.
The committee has issued a decision on the list ofinvestment priorities for socio-economic infrastructure development during the2017-21 period including infrastructure for supporting industries. Earlier, theprovince had developed a 1,000-ha zone in Bau Bang district to call for moreinvestment in supporting industries.
In addition, the province will build a system of technicalstandards for product quality according to international standards, providesupport for businesses in research and development, and promote technologytransfer. Strengthening cooperation with associations to understand businessneeds would be also included.
The department will also coordinate with management boardsof industrial zones to organise goods supply-demand connection programmes inorder to create favourable conditions for supporting industry businesses tomeet domestic and foreign partners, exchange information and share experienceso that they can join global supply chains.
Defining supporting industries to play an important role inthe development of other industries, Binh Duong province has been building along-term development strategy for the sector.
Specifically, the province assigned the provincialDepartment of Industry and Trade to implement a project on supporting industrydevelopment so as to help the People’s Committee complete the legal frameworkand investment stimulus programme in supporting industries in the localities.
Dung said the department has been tasked to work closely withbusiness groups to better understand their demands and with industrial parks tohelp supporting industry businesses network with domestic and foreign partners,and improve their capabilities.
COVID-19 is affecting manufacturing industries that rely onimports, and businesses are realising the importance of using domesticmaterials, the department said.
Binh Duong is among the top five provinces and cities in thecountry in terms of supporting industries, with around 2,300 such businessesand having domestic businesses that are linked up with foreign businesses to gainaccess to modern technologies./.
VNA
