Southern localities accelerate support industry development


Localities in the Southern Key Economic Zone have attached great importance to attracting investment for support industry development

Cities and provinces in the Southern Key Economic Zone, such as Ho Chi Minh City, Binh Duong and Dong Nai, are paying greater attention to helping support industries increase the technological content of industrial products to enable their integration into the supply chains of foreign invested companies.

Positive changes

According to the Industry and Trade Department of Dong Nai Province, the production value of local support industries in the first four months of 2021 reached more than VND111 trillion, accounting for over 20 percent of the province’s total industrial production value. Also in the first four months, companies with foreign direct investment (FDI) invested more than US$451 million in Dong Nai, mostly in the support industry for the electronics sector, machinery and equipment, textile, garment, and footwear production.

Over the past decade, Dong Nai has successfully attracted FDI in support industries. More than 60 percent of support industry products of FDI companies are exported to the US, Japan, the Republic of Korea, and Europe. Many FDI companies have joined global supply chains in sectors such as aircraft, automobile, robot, and machinery using Industry 4.0 technologies.

According to Mai Hung Dung, Vice Chair of the People’s Committee of Binh Duong Province, nearly 2,300 companies are operating in the province in the field of support industries, including 442 textile and garment companies, 172 leather and footwear companies, 593 wood processing companies, and 710 engineering companies. Binh Duong has established an industrial zone covering more than 1,000ha in Bau Bang District, prioritizing investment in support industries, especially FDI projects.

Nguyen Thanh Toan, Deputy Director of the Binh Duong Department of Industry and Trade, said developing support industries is one of the major solutions to improve industrial production capacity, increase the localization rate, reduce dependence on material imports, and enhance the added value of export products.

The Ho Chi Minh City Department of Industry and Trade recently honored 92 outstanding industrial and support industry products of 2020.

New objectives

Ho Chi Minh City is implementing a program to promote support industry development in the 2019-2025 period, creating favorable conditions for businesses to invest in modernizing equipment and develop human resources to enhance competitiveness in both domestic and export markets so that they can gradually engage with global supply chains.

Recently, the Saigon Hi-Tech Park (SHTP) Board of Management signed a regional cooperation agreement with industrial zone authorities of Dong Nai, Binh Duong, Long An and Ba Ria-Vung Tau provinces for coordination in a support industry development program. The deal provides for joint development of an ecosystem for domestic support industry companies to strengthen their linkages and cooperate with each other to become part of supply chains of foreign groups investing in the Southeastern region and the whole country.

The People’s Committee of Dong Nai Province has also launched a plan to develop support industries in the 2020-2025 period. Apart from state incentives, Dong Nai financially supports small and medium-sized support industry enterprises in using infrastructure and renting manufacturing facilities in industrial zones. From now to 2025, the province will establish specialized support industry zones in Trang Bom and Vinh Cuu districts. Support industry enterprises will be supported in selling their products, as well as in human resource training.


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