At the Conference “Situation and solutions to promote Vietnam’s manufacturing industry” taking place on May 14, 2019 in Hanoi, experts, scientists, managers and mechanical enterprises all said that The mechanical industry is the “backbone” of the economy, the State should have a mechanism and prioritize investment in resources to develop the industry.
The policy has been around for a long time, but in the current context, investment needs to have a focus and a focus.
Large investment, slow recovery
According to Mr. Do Huu Hao, Chairman of Vietnam Mechanical Association, the mechanical industry is characterized by large initial investment, long production cycle, slow capital turnover, low profit and long payback period. When moving to the market mechanism, the mechanical industry was stalled, not being invested adequately, thus failing to meet the development needs of the country. In addition, due to the lack of policies to support and protect the domestic market, the market share of the mechanical industry is narrowed, unable to compete with imported and smuggled products of foreign countries, including Previous products were the strength of Vietnam’s mechanical industry such as: machine tools, small movers, bicycles, electric fans, water pumps …
At the conference, Mr. Dao Phan Long, Chairman of Vietnam Association of Mechanical Enterprises expressed his concern: Why the policies and guidelines of the Party and the State encourage the construction and development of the mechanical industry for a long time? But it is difficult to come to life, to lead to 2019, we still have to research and remove many barriers on policies and mechanisms that still make it difficult for enterprises to operate in this field? According to Mr. Long, the promulgation of a number of taxes on import of materials, mechanical products, land tax and corporate income tax for domestic mechanical enterprises is not encouraging. fair between domestic and foreign invested enterprises. This leads to the production and trading of domestic mechanical products without competition right on the “home ground” so it is increasingly lagging further than the international.
Mr. Long said that in order for the mechanical industry of Vietnam to develop in the context of deep economic integration nowadays, it must definitely have the “visible hand” of the State expressed by a policy system. synchronous and consistent.
Need to invest in the key field
According to engineer Nguyen The Ha from Bui Van Ngo Agricultural and Mechanical Engineering Co., Ltd., in the current conditions, the Vietnamese mechanical industry should focus on investment, actively develop agricultural mechanical fields to increase capacity. agricultural labor productivity, increasing the competitiveness of commodity agricultural products, creating added value throughout the agricultural production chain.
Mr. Ha said, from the fact that enterprises maintain market share in the Mekong River Delta, the Vietnamese mechanical industry needs to have a development strategy according to the criteria of adaptability, efficiency and modernization; actively researching science, training human resources and skilled mechanics; produce smart, sophisticated, modern, competitive machines on many markets …
Mr. Do Huu Hao said that, the State and enterprises should focus on developing some fundamental fields of manufacturing mechanics. Specifically, continue to invest and prioritize the development of supporting industries for the mechanical industry (automobile, shipbuilding, manufacturing equipment for agriculture – forestry – fishery); Encouraging domestic metallurgical enterprises to invest in manufacturing steel to supply input materials for the mechanical industry.
Mr. Hao also proposed to reduce the income tax for mechanical enterprises to 15% (instead of the current 25%); increasing the priority score for enterprises using domestic manufactured products in lieu of foreign products when bidding up to 15% of the overall score (instead of adding 7.5% points) synthesized as today) …
According to some mechanical industry experts, the State should select some key products, assign each product to a leading enterprise, in combination with other research and manufacturing facilities to research and complete to create products are competitive in domestic and international markets. The state should have a mechanism to support enterprises throughout the process of researching and perfecting technological products until they become commercial products through investment funding for research and application of science and technology.