Mechanical sector stuck at industry 2.0, needs drastic reform

The nation’s mechanical sector need radical reform despite its recent progress in quality and output, experts and policymakers agree. The consensus was expressed during a scientific workshop on future development of the mechanical sector held on Thursday in the northern province of Thai Nguyen, a location famous for rich minerals and robust mining activities. The workshop reaffirmed the mechanical sector’s critical role in the country’s modernisation and industrialisation efforts, and sought to identify obstacles and weaknesses hindering its growth. Participants also discussed appropriate policies to unleash the sector’s full potential. According to reports by the mechanical sector’s business association and the Ministry of Industry and Commerce, in 2006-2015, total output grew 342 per cent and the sector has constantly managed to account for 31-32 per cent of the country’s GDP. Currently, there are some 14,800 businesses in the sector, mostly small-scale. Just 12 businesses employ more than 5,000 people and 116 have more than 1,000 workers. Nearly 100 businesses have a charter capital of over VND 500 billion (US$22.05 million). Several achievements Experts said that in general, the sector has registered several achievements, with many businesses now capable of designing, making, and integrating fully automated assembly lines, or being able to produce road and marine vehicles, in addition to several improvements in metallurgy and metal casting. Several industries have been established, including manufacture and assembly of steel structures, shipbuilding, manufacture and assembly of automobiles and motorcycles, manufacture of engines and agricultural machinery, electrical equipment, spare parts and household goods. However,… [Read full story]


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