Market News

In recent years, Vietnam’s Mechanical Industry has achieved certain achievements. Domestic enterprises have been able to master the technology, manufacture many types of hydromechanical equipment for hydropower plants; synchronous equipment for industrial plants…

The domestic mechanical engineering industry has also produced and assembled most types of cars, trucks, passenger cars, motorbikes to meet the domestic and export market needs. There are enterprises in the automotive sector such as Thaco, Vinfast,… Typically, being the leader in mechanical engineering in Vietnam, Thaco has constantly innovated and developed modern machinery and line systems; applied advanced technology, thus gradually creating a brand of typical products meeting international standards and a variety of requirements of customers. This company has ability to participate in domestic and export supply chains such as mechanical processing; molding; agricultural mechanics and automotive mechanics.

The biggest bright spot of the mechanical industry must be mentioned probably the fabrication of electrical equipment, with the successful production of 220 kV-250 MVA transformers; 500 kV transformers, especially 3-phase 500 kV-467 MVA power transformers. These products are safely put into operation, thereby affirming the outstanding maturity of Vietnam’s electromechanical industry.

Firstly, the government needs to have specific policies, because if enterprises invest in mechanical engineering with 3.0 and 4.0 technology, but have to borrow at the same interest rates as other economic sectors, it will be difficult to achieve the goal of improving internal capacity for Vietnamese mechanical engineering. In addition, some other important issues that need to be strongly directed and implemented by the government are the use of technical barriers, the origin of goods,… to properly protect the domestic market, like countries in the world have been actively implementing.

Secondly, there should be strict regulations on reasonable proportions in the volume and value of the project to ensure that local mechanical enterprises participate in international practices, aiming not to buy accessories from abroad, but encourage the transfer of technology to do it themselves.

Thirdly, it needs to improve the current state of mechanical products of domestic enterprises. Along with that, in order to develop, it is necessary to develop clusters of manufacturing industries, which are linked together to coordinate production functions; supply machinery, spare parts; build infrastructure, etc.

Fourthly, innovate thinking about mechanical production, anti-subsidy, create all policy conditions, including inputs and outputs for Vietnamese mechanical products; identify the market more clearly, identify the domestic and foreign market segments, from which to introduce accompanying macro policies, especially tax and credit policies for the mechanical industry.

Fifthly, promulgate a number of specific incentive and support mechanisms and policies on taxes and fees.

Besides, it is also necessary to accelerate connectivity, technology transfer from advanced technology providers in the world and focus on new technologies. Because this will be a huge opportunity for Vietnamese enterprises to make breakthrough changes in terms of technology.