Supporting industry: Open direction for many businesses

(Baonghean) - Supporting industry is a priority direction in industrial development and investment attraction of the province. However, up to now, this field has only had a few enterprises participating and is still fragmented, not meeting the true requirements of supporting investors and projects under construction in the area.

Getting Started

Supporting industry is understood as all industrial products that play a supporting role in the production of main products. These are components, accessories, spare parts, packaging products, raw materials for painting, dyeing, etc. And more broadly, to produce the above “supporting” products, other “supporting” products are needed. Therefore, sometimes this product is support for another product.

Elevator components manufacturing at Strong plus Elevater Vietnam - Korea Company.

In the province, for many years, all levels and sectors have called for the development of supporting industries. There have been enterprises that have caught on and chosen the direction of "supporting industries" to produce and supply products to other enterprises and are currently developing. Strongplus Elevator Viet Han Co., Ltd., established under Investment Certificate No. 271024000002 issued by Nghe An Provincial People's Committee on June 25, 2013. The company is currently manufacturing and distributing mechanical products, bolts, screws, and auxiliary equipment mainly for elevator production and exporting to Korea.

Currently, with a small scale, the company exports about 3 containers of screws, equivalent to 5 tons of goods, to Korea per month according to orders. Company Director Mr. Le Nguyen said: The company imports high-quality steel from China and brings it back to manufacture screws for elevators. Currently, the unit is operating stably, creating jobs and income for workers. Two other businesses are producing very well, namely BSE Vietnam Co., Ltd. in the Southeast Economic Zone and Em Tech Co., Ltd. (Korea) in Hung Thinh. These two businesses produce components for mobile phones such as speakers and some other details. Mr. Cho Sung Koo, CEO of BSE Vietnam Company said: The company produces 15 million products per month; in 2015, it produced 20 million products/month to serve the assembly of mobile phones, with revenue reaching 5 million USD/month, the factory currently has nearly 3,000 workers.

Another enterprise that is also successful in the supporting field is Sabeco Packaging Company, which supplies two-piece beer cans and carton packaging for the corporation's own Sabeco breweries. Thanks to its closed production process, Saigon Beer - Alcohol - Beverage Corporation has been proactive in supplying cans and packaging for production, reducing costs compared to having to import from other units.

Other enterprises such as Military Zone 4 Packaging Factory and Khanh Vinh Packaging (Bac Vinh Industrial Park) are all enterprises that supply supporting products to other enterprises, creating jobs and stable income for workers. Recently, another enterprise that is also moving in the supporting direction is Nafood's concentrated passion fruit juice factory (Quynh Chau - Nghe An). This product will be the raw material for a number of export beverage factories.

Assessing this field, Mr. Nguyen Van Hai, an industrial monitoring specialist of the Provincial People's Committee, said: Although there are many businesses operating, those that have invested in the production of supporting products are showing stability. For example, cassava starch is a supporting material for other products such as cosmetics, instant noodles, etc., or fish oil in Dien Chau of Xuri Seafood Processing Company is also an export material for processing other products. Supporting industries contribute to promoting the potential strengths of the province.

Opportunities for supporting industries

Supporting industry plays an important role, increasing the competitiveness of industrial production, contributing to creating an attractive investment environment. However, in Nghe An in particular and the whole country in general, most enterprises are having to import components and supporting materials from abroad, especially from China, Korea and European countries...

Electronic components manufacturing at BSE Factory (Southeast Economic Zone).

As a new garment center of the country, Nghe An currently has more than a dozen industrial garment factories, but all accessories such as buttons, zippers, lace, labels, tags, etc. are mainly imported. For the automobile and motorbike industry, Nghe An also does not have an auxiliary industry. For agricultural production, there is a great need for "deep" processing but it is not yet met when sauces, spices, additives for the production of packaged goods are being imported or processed raw for other manufacturers such as concentrated pineapple juice, black tea, etc. Breweries in the area all have to import auxiliary materials. Mr. Cho Sung Koo, CEO of BSE Vietnam Company said: All auxiliary products serving the factory's production are being imported from China and Korea, but Nghe An does not have them, so sometimes the business is passive. For example, the company needs a lot of iron products to stamp molds, used as bases for product production, but Vietnam and Nghe An have not been able to process such precise details, so it has to import about 40 thousand products each year.

In Nghe An, the processing and manufacturing industry in 2014 increased by 14.14% compared to 2013. This is due to a number of new businesses coming into operation such as textiles, beer, milk, jewelry processing... so the products increased. However, if we analyze clearly about the supporting industry, it is very difficult to have data to prove the effectiveness of this field. Located between large economic zones such as Nghi Son and Vung Ang, supporting industry is the direction that many economic experts advise for Nghe An. One of the important orientations in attracting investment of the province by 2020 is to basically develop into an industrial province in the direction of high technology, energy saving, and environmental friendliness, therefore, supporting industry is always one of the priorities to create momentum for the industry to grow sustainably. That is also a good opportunity for businesses to invest in supporting industry.

Chau Lan