HCMC boosts development of high-tech supporting industries

At an international seminar on experiences in calling for investment and management of high-tech supporting industrial parks yesterday, participants said it is necessary to create a symbiotic ecosystem for supporting technology enterprises that apply high technology to deeply integrate into the global supply chain.
HCMC boosts development of high-tech supporting industries ảnh 1 Participants at the seminar (Photo: SGGP)
The seminar attracted nearly 200 delegates who are domestic and foreign economic and business experts.

Mentioning Ho Chi Minh City’s economic status, Vice Chairman of HCMC People's Committee Vo Van Hoan said that the industry-supporting industry is very important, having an impact on the city's sustainable and long-term economic development. That important role is reflected in the city's industrial production value, accounting for about 32.3 percent of industrial output in the southern key economic region, contributing about 16 percent of the country's industrial production scale; besides, contributing 23 percent of the city's Gross Regional Domestic Product.

In fact, many supporting industry products of city enterprises based on the high-tech application have joined the global supply chain such as the high-precision mold products provided to Colgate by Lap Phuc Company. Hiep Phuoc Thanh Manufacturing Company and Minh Nguyen Supporting Industry Company have been joining Samsung's product chain while Thong Nhat Rubber Company and CNS Amura Precision Company are producing plastic components for suppliers of auto companies and other companies involved in the global supply chain of supporting industries.

However, it must be admitted that the supporting industry in Ho Chi Minh City has many shortcomings, Professor Nguyen Trong Hoai in HCMC-based University of Economics said that supporting industry mainly serves the production of products with simple technology whereas they heavily depend on imports.

Moreover, the supporting industries have not been deeply involved in the global value chain, and the linkage between enterprises is loose. In addition, the allocation of production premises and land funds for industry-supporting industries has not been suitable for enterprises' needs; therefore, the city has not well exploited the advantages and potentials of the industry in general and enterprises in particular.

The city's existing industrial parks - export processing zones (EPZs and IZs) are slow to transform their operating models and just about 40 percent are locally-made devices.

Thus, Mr. Hoan suggested that experts and businesses focus on discussing the four key core factors needed to complete the high-tech application support industry park.

The four key core factors are calling for investment attraction, operation model, the role of state management agencies as well as necessary mechanisms and policies for the formation and management of operation, the role of foreign-invested enterprises and domestic manufacturing enterprises in participating in investment and operation in the High-tech Application Support Industry Park.

According to Prof. Dr. Nguyen Trong Hoai, all new or old industrial parks must be transformed in the direction of an ecological and environmentally friendly industrial park. This is a key factor because FDI enterprises are aiming for sustainability.

Therefore, they require secondary suppliers to also ensure environmental protection factors in their production activities. There is a policy to form an ecosystem of the supply chain of supporting industry products between enterprises inside and outside the IZ to reduce input and output costs; thereby, FDI enterprises can participate in the global supply chain. Particularly, enterprises also need to convert production technology associated with digital transformation.

Director of Korea Institute of Industrial Technology Byun Ki Jung emphasized that, in addition to policies to support capital, investment costs, and premises for businesses, especially small and medium-sized enterprises, cities, and towns, there should be policies to support technology transfer according to research costs. In addition, in the coming time, the city needs to strengthen the stability of the supply of domestic materials, expand the global supply chain and the global cooperation model.