Supporting industries seeks development direction in global pandemic

Production at a supporting industry enterprise in Bien Hoa City

In the midst of this difficult time, An Phat Industrial Technology Company Limited (Bien Hoa City) still received more orders than the previous year. The company's workers must increase production to ensure delivery deadlines for customers. Mr. Nguyen Hoa An, Director of the company, said businesses must focus on production to meet the orders of partners. The concern is not an order but a long-term epidemic, fear of affecting production workers, at the same time, to prevent and prevent epidemics from happening.

Similarly, the orders of Kim Vinh Thang One Member Company Limited (Bien Hoa 1 Industrial Park) also increased. In order to meet the partners' production standards, this enterprise has reorganized its system of machines and production lines methodically, considering this is a solution to confirm its name and quality with FDI partners.

According to Mr. Le Tri Minh, Chairman of Dong Nai Supporting Enterprises Association, Director of Dai A Thanh Co., Ltd. (Bien Hoa City), many enterprises in the Association received orders increased from 30-40 % compared to same time last year. Especially most of the orders come from FDI enterprises.

The reason for the increase in orders is the lack of raw materials for production - due to restrictions on imports from China. Meanwhile, foreign experts of FDI enterprises cannot go to Vietnam, so they have to switch to urgent orders at domestic supporting enterprises.

Finding long-term development directions

According to businesses, what they are worried about now is the lack of raw materials for production. In order to produce supportive industrial equipment, spare parts, components, enterprises also need materials. Currently, domestic enterprises have provided quite a large amount of raw materials, but some categories still have to be imported.

As a manufacturer of molded parts, Kim Vinh Thang One Member Company Limited needs to import specific types of iron and steel. Its director said that the current source of raw materials is fine but if the epidemic lasts another 1-2 months, the possibility of raw materials will become scarce. The longer the disease spreads, the more difficult it becomes.

According to Mr. Le Tri Minh, in order for the supporting industry to develop in the right direction, in the long term, it is necessary to have solutions such as:  investment of resources from the State, the concentration of industrial development, especially supporting industries and a number of important basic material industries such as fabricated steel, fabrics, new materials, etc. The solutions needed are support for credit, human resources, innovation and market development as well as land and tax incentives. 

Meanwhile, the province also needs to develop a “long-term” development strategy, focusing on the strengths that enterprises in the province possess. Hence, linking businesses and members together, overcome limitations to continue meeting the needs of cooperation with FDI, increasing trust for these enterprises to replace imported goods with domestic products, components and raw materials.