Promoting the Strategy for developing Vietnamese Mechanical sector

In process of implementing the strategy for developing Vietnamese Mechanical Sector up to 2010 with an outlook to 2020, though there was a lot of difficulties, recently, the mechanical sector has strived and risen to make an initial evolving in a number of the fields, as manufacturing hydro-mechanical equipment, petroleum rigs, electrical equipment, manufacturing and providing  equipment for cement and ship building projects and the projects in a full equipment package... Some research - design agencies and mechanical manufacturers have step by step innovated, strengthened the capabilities of consulting, designing, manufacturing equipments and technologies, taking part in some bid packages of national focusing projects.

In 2013, The production value of mechanical industrial  sector reached 700  thousand billion dongs, taking  about 20% total production value of  whole national industry; the export value reached over 13 billion USD, 6 times in comparison with the one in 2006. These results contributed actively in socio-economic   development and promoting industrialization and modernization of the country

Beside the achievements, Vietnamese mechanical sector still has a number of limitations and weaknesses: the implementation of mechanism and policy for development of mechanical sector was limited and consistently insufficient; the role of management, and promotion of state management agencies on the mechanism and policy for development of mechanical sector have not brought into play. The national mechanical enterprises innovate slowly and private enterprises have small sizes, pay little attention to the investors and mechanical sector as well. The investment in mechanical sector is small, dispersive and self-contained in each enterprise; the coordination, labor distribution among enterprises are insufficient, the sense of initiative for international cooperation and integration is not risen;  the expertization in production is low…, all that leads to low quality, competitiveness and high cost of the mechanical products. The role and sense ofi initiative of the associations has not been risen.

Beside the mentioned above subjective reasons, there are also still the objective ones as the structure and conditions of industrial infrastructure for rapid and sustainable development of mechanical sector are unreasonable and not solid. The basic material production sectors as metallurgy, chemistry, plastic haven't ensured actively the inputs for the mechanical sector. Besides, the mechanical support-industry is developed very slowly, the researching-designing ability is limited. The government decision  on handing/appointing the bid for the pivotal mechanical products, using domestic materials, goods and the management of EPC packages has been carried out not seriously and thoroughly, without supervising and speeding up of the functional offices, as well as concrete financial sanctions... In 20123, the mechanical sector met only 34.5% demand of the country and did not achieve the outline targets in the Strategy.

To focus the resources on developing the Vietnamese mechanical sector to become a major industrial sector, actively contributing in completing industrialization and modernization of the country, the P.M has confided the Ministry of Industry and trade (MoIT) as sponsor to coordinate with the concerning ministries and agencies for establishing and submitting the government a Decree on developing supporting industry, with prior selecting the development of manufacturing mechanical products for automobile making, ship building, transportation; engines, machineries and equipment for mechanization of agriculture - forestry - fishery and processing industry.

The MoIT as a sponsor in coordination with concerning  ministries, agencies, local administrations and mechanical enterprises to build the Strategy and Master Plan for developing the Vietnamese mechanical sector up to 2025, with the outlook to 2035 according to the process of the deep and wide international integration in direction of choosing concrete pivotal mechanical products in the period of 2014 -2020, focusing mainly on mechanical manufacture, ship building, transportation, mechanical equipment for agriculture - forestry - fishery development and processing industry; medical and electrical equipment, with the goal of developing the Vietnamese mechanical sector rapidly, stably and sustainably; contributing am important part to the industrialization and modernization of the country.

P.M committed MoIT as a sponsor in coordination with Ministry of Planning and Investment (MPI), Ministry of Finance and concerning agencies to study for  building the mechanism, policy to assist manufacture and encourage the consumption of domestic mechanical products, in accordance with international commitments signed by Vietnam; to have drastic measures for steering capitalization and restructure of state owner mechanical enterprises; to promote steering the development, supervision and assessment of  implementing the policy of development of mechanical sector; to recommend the financial mechanism for strict deal with violations; to promote activities of industrial  encouragement, investment and trade stimulation  for serving production and consumption of mechanical products.

MPI as a sponsor in conduction with the concerning ministries and agencies to issue the guideline in detail on carrying out exciting policy for focusing mechanical products regulated in Government P.M Decision No 10/2009/QĐ-TT dated 16/01/2009.

P.M committed the Ministry of Finance as a sponsor in  coordination with the concerning ministries, agencies and the Association of Vietnamese Mechanical Enterprises to review, recommend tax policy for stimulating pivotal mechanical products according to international routines and commitments; to concentrate  on solving the problems regarding tax and custom administrative procedures to take up the difficulties for enterprises in importing equipment and material, and exporting mechanical products.

Under P.M concrete guidance  the Ministry of Science and Technology (MoST) as a sponsor  in coordination  with the concerning ministries, agencies to promote the investment for researching and developing technologies in mechanical sector; to prefer providing capitals of science and technology for assisting transferring technology costs, design copyright and software purchase, hiring foreign specialists and training the  manpower sources serving the investment projects for manufacturing pivotal mechanical and industrial assisting products; and to establish and issue the technical standards, regulations for pivotal mechanical products, making basis for controlling the product quality in order to limit cheap and low-qualified mechanical products imported into Vietnam.

P.M confided the Ministry of Agriculture and Rural Development (MARD) as a sponsor  in coordination  with the concerning ministries, agencies to promote the implementation of investment projects for making agriculture machines, auxiliary industry for agriculture machinery, serving mechanization in agriculture - forestry - fishery and processing industry; the Ministry of Construction to train and prepare the manpower sources for researching, designing, making mechanical products in order to be ready to participate in the construction of the nuclear plants in Viet Nam.

P.M requested the provinces and under central cities  basing on the current situation and development conditions of mechanical sector in their area to build the Development Planning of mechanical sector in accordance with the socio-economic development in the locals.

Association of Vietnamese Mechanical Enterprises and Viet Nam Mechanical General Association to closely coordinate with the state management agencies in recommending the mechanism and policy of Viet Nam mechanical sector development; to guide and conduct its member enterprises to strengthen the cooperation, integration and create the specialization in manufacture in order to promote the competitive capability of Vietnamese mechanical products.

P.M requested the mechanical enterprises to focus on completing the investment projects of mechanical products approved; to strengthen the investment in auxiliary industry for increasing the interior ratio in mechanical sector; to promote improving the cost management, lowering the costs, enhancing qualities and competitiveness of products; as well as to promote the investment integration and cooperation, investment in innovating technology and modern equipment to make qualified products with reasonable prices for domestic and export demand.

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