Quang Nam province has just sent an official dispatch to the Ministry of Industry and Trade and the Ministry of Planning and Investment to propose a supplement to the nation’s planning of a center of mechanical industry and supporting industries in Chu Lai Open Economic Zone.
According to the People’s Committee of Quang Nam province, over the years, Chu Lai Economic Zone has gradually improved its infrastructure and attracted many effective investment projects, contributing to the socio-economic development of Quang Nam province. The EZ is an important lever for the Central Vietnam key economic region (CVKER).
Currently, in Chu Lai Open Economic Zone, an auto mechanical industrial park has been formed, which is a highlight of the automobile manufacturing industry not only of Quang Nam province but also of the country. In the field of mechanical industry and supporting industry, there have been developments to some extent.
In addition, Quang Nam province has also issued planning, mechanisms and projects to promote the development of supporting industries such as: Project on development of supporting industries for the textile and garment industry in the province in the period 2014 – 2020; Planning on development of supporting industries in the province until 2020, with a vision to 2025.
According to statistics, in Quang Nam province, there are about 63 investment projects in the mechanical engineering industry, with a total investment of about 29,000 billion VND and there are more than 2,000 small mechanical production establishments operating in the field of household mechanical engineering, production and repair of agricultural machinery and tools, construction mechanics and civilian mechanics.
One typical example for the mechanical engineering industry and supporting industries today in Quang Nam province is THACO Group. Currently, THACO has 7 automobile assembly factories; in which there are 2 factories with the largest scale in Southeast Asia: Thaco Bus Factory and Thaco Mazda Factory, 12 factories producing spare parts on an area of 93 ha, with a total investment capital of 1,690 billion VND…
The localization rate at THACO’s auto assembly plants is 35 – 40% for trucks, 55 – 60% for passenger buses and over 25% for cars. By self-manufacturing and gradually reducing dependence on imported components, THACO Truong Hai is becoming a leader in the development of related and supporting industries in Chu Lai Open Economic Zone.
In addition to self-manufacturing and supplying to its assembly plants, THACO also exports and participates in the global supply chain. The main export markets are Korea, Japan, Malaysia, Cambodia, Russia, Turkey, Kazakhstan… THACO has established a mechanical processing and production complex with a total investment of 1,300 billion VND, to manufacture and supply auto spare parts for THACO and domestic and foreign enterprises.
According to the People’s Committee of Quang Nam province, the development of the mechanical industry and the supporting industry has not been commensurate with its potential. Vietnam’s deeper integration into the global economy with its accession to the World Trade Organization (WTO) as well as participation in many Free Trade Agreements has opened up many opportunities but also comes with increasingly fierce competition. Therefore, in order to take advantage of opportunities and cope with challenges, local industrial production needs to take a step forward with in-depth science, technology and added value in the global value chain.
Quang Nam informed that the province has implemented the development a pilot mechanism scheme to encourage cooperation in clusters of supporting industries and mechanical industries in Chu Lai Open Economic Zone. Up to now, Quang Nam Province has received comments from the Ministry of Industry and Trade and the Ministry of Planning and Investment, to complete the outline of the Scheme and execute the next steps.
Therefore, in order to develop the mechanical industry and supporting industries of Quang Nam province, develop Chu Lai Open Economic Zone to become one of the cores and major development centers of the central key economic region. , as the center of the automobile industry and supporting industries for the automobile industry, the establishment of a center for mechanical industry and supporting industries in Chu Lai is necessary.
Therefore, Quang Nam province proposed to supplement the national plan for the inclusion of the center of mechanical industry and supporting industries in Chu Lai Open Economic Zone.
