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Machinery sector calls for State support
The domestic machinery industry focuses mainly on installation and repairs with no major manufacturing facilities in the country, an industry representative said.
The industry needs considerable State assistance to develop and meet existing domestic demand, said Nguyen Van Thu, chairman of the Viet Nam Machinery Enterprises Association.
He told the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) that setting up a plant to build heavy machinery was vital since Vietnamese machines are of low quality and cannot compete with others in the same product lines.
Most domestic enterprises were using backward production technology, he added.
"Though machinery has been considered a key industry, its main functions are just installation and repair," Thu said, adding Government assistance was needed to create industrial infrastructure, generate capital and enable technology transfer.
The Viet Nam Engine and Agricultural Machine Corporation - a large machinery enterprise, still needed a technical crew hired abroad to dismount second-hand equipment purchased from South Korean firm Samsung for reinstalling an automobile project in Thanh Hoa Province.
Thu said a heavy machinery factory with an investment of around US$300 million should be built to meet the demand for industrial boilers and other vital machinery.
This would help synchronise machinery production in the country and create a more solid base for the nation's industrialisation and modernisation programme, he said.
Thu noted that Japan was successful in its industrialisation and modernisation effort because it had invested very early in many steelworks and shipbuilding factories.
Many domestic machinery enterprises have tried to improve their capacity but were constrained by limited capital, which has affected technology transfer, a crucial factor in the industry's development.
VietNamNet, VietNamNews
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