The industrial authority in Ho Chi Minh City pin their hopes on thefreshly-run Vie-Pan Techno Park (VPTP) as the southern economic hub goesto great lengths to accelerate sluggish support industry.

The park, which started operating in early December in Hiep PhuocIndustrial Park, Nha Be district, is the first of its kind inVietnam and is constructed to provide pre-fabricated workshops ofvarious sizes.

According to Vu Van Hoa, head of theHCM City Export Processing and Industrial Zones Authority, the Japanesesmall and medium-sized support enterprises only need working space ofbetween 300m2 and 1,000m2 and their demand is met by the VPTP.

Hoa said the park would facilitate enterprises’ connection and form anetwork of technology and business exchanges, thus benefiting theindustry for the sake of development.

Tat ThanhCang, Vice Chairman of the HCM City People’s Committee, said that thiskind of park would help local companies establish loser links withforeign companies in terms of technology transfer, in localizing theirproducts with high technology contents.

Eight enterprises have so far confirmed to invest in the park and two of them were already licensed, Hoa said.

Sanko MDF, specialising in water and oil pipes, will be the first company to go into production by the end of December.

Up to nearly 50 percent of Vietnamese companies in the city’sindustrial zones are engaging in the support industry but their productshave low added value and most of them have not been part of any globalsupply chain.

Vice Chairman Cang said the citywould revise mechanisms and policies relating to finance, land, andtrade and investment promotion to assist small and medium-sizedenterprises operating in the industry.

The city’slong-term goal is to multiply the VPTP model with a view of establishinga strong support industry in service of its industrialisation andmodernisation, Cang said.

Another version of the VPTP will be built at the Le Minh Xuan 3 Industrial Park.-VNA