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Dong Nai "the hub" of manufacturing machinery and equipment

Over the past two years, machinery, equipment, and spare parts have become the second largest export value of the province. Dong Nai becomes the "hub" of Vietnam's machinery and equipment exports and participates in the global supply chain.


About the past 5 years, the production and export of machinery, equipment and tools and spare parts has continuously maintained a good growth rate of 7-12% per year.

a1.jpgManufacturing machinery components for export at Vietnam Kaneko Co., Ltd. in Nhon Trach 3 Industrial Zone, phase 2, Nhon Trach District.

 

Thanks to the selective investment attraction

Before 2020, in attracting foreign direct investment (FDI), Dong Nai has made a policy to prioritize projects in the field of supporting industries. Accordingly, the number of FDI projects granted new investment certificates and investment expansion is between 30-40% in the field of supporting industries and the manufacturing industry of machinery, equipment and tools and spare parts.

Mr. Ngo Hoang Ho, General Manager of Sales Division of Vietnam NOK Co., Ltd. in Amata Industrial Park said: “The company plans to open another factory to produce equipment and spare parts for manufacturers of cars and planes in the world. It is expected that by the end of this year, the factory will complete and start recruiting more workers for production lines and increasing capacity to meet orders from foreign partners.

Each year, Dong Nai's export turnover of machinery, equipment and tools and spare parts increased by more than US$100 million compared to the previous year. Specifically, in 2019, the export of machinery, equipment and tools and spare parts was more than US$1.7 billion; in 2020 increase to US$1.82 billion; in 2021 about US$1.98 billion. It is estimated that in 2022, the export of this product will continue to increase because many businesses are planning to expand their investment.

 

Supporting Industry Center

Enterprises producing machinery, equipment and spare parts in Dong Nai Province are mainly for export, thus gradually the province becomes an important link in the global supply chain. In Dong Nai, there are FDI enterprises specializing in manufacturing components for cars, airplanes, spacecraft, ships, and machinery applying 4.0 technology in industrial and agricultural production.

 

For example, in Bien Hoa city, Meggitt Vietnam Co., Ltd. located in Bien Hoa 2 Industrial Zone, which specializes in manufacturing engines for aircraft from civil to military in the world and more than 80% of products supplied to domestic and foreign customers. Major airlines are Airbus, Boeing. Schaeffler Vietnam Co., Ltd located in Amata Industrial Park manufactures all kinds of large and small bearings for most industrial, agricultural, and robot machines for more than 60 countries and regions. Bosch Vietnam Co., Ltd located in Long Thanh Industrial Zone, Long Thanh District manufactures and supplies equipment for automobile manufacturers in the world.

Mr. Nguyen Van Tam, Director of Vietnam Kaneko Co., Ltd. located in Nhon Trach 3 Industrial Zone, Phase 2, Nhon Trach District said: “In 2016, Kaneko officially came into operation. The company's products are anti-explosion valves for the oil and gas industry, aircraft, spacecraft, and industrial machines. Currently, Kaneko is the world's leading modern valve factory and products are sold to most countries around the globe. It is expected that in the coming time, the company will continue to expand production in Dong Nai Province to increase its capacity."

According to Ms. Nguyen Thi Hoang, Vice Chairperson of the Provincial People's Committee, FDI inflows into the industrial sector, especially supporting industries in Dong Nai Province, will promote domestic-invested enterprises to develop together. Currently, many domestic enterprises have become input suppliers for FDI enterprises in Vietnam. To participate in the production chain with FDI enterprises, domestic enterprises pay great attention to training high-quality human resources, investing in modern machinery and equipment, and must ensure environmental and labor criteria.

                                                                                         Khanh Minh

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