HCM City (VNS/VNA) - The mechanical engineering industry needs supportivepolicies from the Government to enhance its competitiveness during the fourthindustrial revolution, officials and industry experts have said.

Pham XuanDa, head of the Ministry of Science and Technology’s southern affairs, said theindustry plays an important role in manufacturing, which is the backbone of theeconomy.

“Althoughthe [Government’s] preferential and support policies have not met theexpectations of the industry, the mechanical engineering industry has achievedremarkable results such as expanding rapidly in terms of number of enterprisesfrom around 10,000 in 2010 to more than 21,000 enterprises in 2016, andincreasing exports to over 16 billion USD,” he said. 

“Localenterprises can make some products that we previously had to import. Productionlines in factories are synchronised, and enterprises have developed a number oftechnologies.”

Localfirms have also successfully developed many kinds of machinery, equipment andproduction lines for the agricultural sector, including for animal feedproduction and cassava starch processing, he said.

Dao PhanLong, chairman of the Vietnam Association of Mechanical Enterprises (VAMI),said in the past all types of steel structures and non-standard equipment usedin industrial plants, oil rigs and hydropower, irrigation, cement, and chemicalplants had to be imported.

But now Vietnamcan make them, he said, adding that local firms can also build ships of 70,000- 105,000 tonnes.

But Da saidthe industry has many limitations, including low competitiveness of itsproducts, local shortage of raw material supply and qualified human resourcesand lack of linkages between companies.

At arecent seminar held in HCM City experts said in the context of integration andthe fourth industrial revolution, new requirements have emerged for themechanical industry.

Do Phuoc Tong, Chairman of the HCM City Association of Mechanical – ElectricalEnterprises, said policies to help enterprises get bank loans for buyingequipment, machinery and production facilities are necessary as are programmesto help enterprises upgrade their technologies and train human resources.

Buildingmechanisms to promote technical and technology transfer to Vietnamese companiesby foreign enterprises is also vital, he said.

On theother hand, mechanical enterprises need to proactively restructure and embraceinnovation, improve management efficiency, reduce costs, improve productivityand quality, expand markets, enhance linkages with businesses in the sameindustry, and actively participate in global value chains, he said.

Concurring,Nguyen Van Thu, VAMI’s former chairman, said Vietnam’s mechanical engineeringindustry is a few centuries behind the world, making it necessary to create adriving force for it to develop.

Fundingand quality human resources are two important factors in the development of theindustry, he said.

“We areliving in a flat world and need to have policies ahead of one’s time sothat our mechanical engineering quality and capacity can keep up with thedemand of the world market.”-VNS/VNA