The Prime Minister emphasized that it is necessary to renovate thinking and combat subsidies but to create favorable conditions for input and output policies for Vietnamese mechanical products.
At the conference on solutions to promote the development of Vietnam’s mechanical industry this morning, businesses asked: “Does the Prime Minister ‘decide to fight’, does the Government ‘decide to fight’ to bring Vietnam’s mechanical engineering industry on? Nam stepped forward ”.
The state plays a “midwife” role for businesses
“I believe this conference, on the basis of 21,000 mechanical enterprises and the strategic orientation given by the Government, we will build the development of Vietnam’s mechanical engineering industry,” Prime Minister Nguyen Xuan Phuc said when speaking. Conclusion conference. The Prime Minister said that after this conference, there will be a Government resolution on solutions to develop Vietnam’s mechanical industry. He asked the Ministry of Industry and Trade to absorb the ideas to have a good resolution, bringing the breath of life. Referring to a number of shortcomings and shortcomings, making the mechanical industry “exhausted”, the Prime Minister emphasized that it is necessary to renovate the thinking on mechanical production and fight against subsidies but must create all conditions on input policies and outlet for Vietnamese mechanical products. According to the Prime Minister, first of all, there must be aspirations and dedication to Vietnam’s economic development and Vietnam’s mechanics to increase in the global value chain. At the same time, it is necessary to define the market more clearly, define the domestic and foreign market segments, from which there are accompanying macro policies, especially the tax and interest rate policies for the mechanical engineering industry. The policy must “leapfrog” for the mechanics to take advantage of the latecomer in the context of integration. The Prime Minister also promised to improve the institutional mechanism and policies synchronously and strongly enough, especially the localization policy; creating markets for mechanical engineering enterprises to develop, in which, promote the team of mechanical enterprises. At the same time, policy research assists businesses to participate more in domestic projects and projects … The Prime Minister also noted a serious shortage of manpower in the mechanical engineering industry. Therefore, it is necessary to build a strong team of mechanical businessmen with the bravery and aspirations of Vietnamese people in the marketplace. The Prime Minister assigns a series of ministries to develop the mechanical engineering industry in the coming time. In particular, the Prime Minister requested the Ministry of Finance to preside over the completion of tax and fee policies to help domestic automobile manufacturing and assembly enterprises to raise the domestic value ratio, reduce prices and increase competitiveness. According to the Prime Minister, Vietnam needs to build a mechanical industry on a par with other countries in the region. Therefore, the Government and Prime Minister expect the business community operating in the mechanical industry in Vietnam to make more efforts and take more initiative in investing and applying science, technology and modern management to increase competitiveness of mechanical enterprises in particular and enterprises of processing industry, manufacturing in general. “The Government and the Prime Minister always accompany businesses and mechanical entrepreneurs with the desire to reach high heights, make good use of opportunities and conditions, and occupy the peaks of science and technology … “, Said the Prime Minister.
Competitive pressure from China is huge
According to the report of the Ministry of Industry and Trade, at present, Vietnam’s mechanical strength has concentrated in 3 sub-sectors including: motorbikes and spare parts of motorbikes, mechanical appliances and tools, automobiles and auto parts. bowl. These three sub-sectors account for nearly 70% of the total industrial production value of mechanical engineering nationwide, having domestic systems of mechanical plants of all sizes. However, the Ministry of Industry and Trade also mentioned the fact that domestic mechanical enterprises only meet 32% of the demand for mechanical products that the economy is in need. The majority of mechanical enterprises are not ready for the application of the achievements of Industry 4.0 in production; Research and design capacity is limited, there are very few newly registered inventions and inventions; equipment and technology level are slow to innovate. Dr. Nguyen Chi Sang, Vice Chairman of Vietnam Association of Mechanical Enterprises (VAMI), said that the industry is constrained by capital loans due to commercial banks’ loans are often short-term, interest rates are high and unstable. Meanwhile, the fixed capital for mechanical production is often large, the working capital turnover is low, the payback period is long, so the mechanical engineering industry does not attract investment projects. Besides, there is a great pressure of competition from foreign enterprises, especially from China because they have consistent and long-term policies to support the mechanical engineering, especially export mechanical engineering. While Vietnam has no trade remedies measures to protect the domestic market for mechanical engineering … According to Mr. Sang, we do not have a long-term, consistent orientation on the policy of localization as well as mastering technology in industries. He cited a project to develop high-speed rail and urban railway, not to mention the localization program but the default of foreign purchases. This will incur a very high price. “If there is a policy of localization, we will localize up to 60%, owning the project management, manufacturing equipment costs will greatly reduce,” Mr. Sang said. In addition, he also pointed out the situation leading to the “slow growth” of the mechanical industry that comes from the enterprises operating spontaneously, closed, lack of links, lack of cooperation. This leads to overlapping investment, poor investment efficiency, and uncompetitive products compared to imported products.