Kien Giang province focuses on developing supporting industries

From now to 2020, Kien Giang province focuses on developing supporting industries to serve production activities of industries in the province and supply to the domestic market.

According to Ms. Le Thi Minh Phung, Vice Chairman of Kien Giang Provincial People’s Committee, although the development of supporting industry in the province has been considered a key task in the recent time, in fact, the number of facilities operating in the supporting industry still accounts for a small proportion of the total number of industrial production facilities. Enterprises in supporting industries are mainly small and medium-sized establishments, capital capacity, technology and market scope are still limited; Added value of supporting industries is relatively low, etc.

For example, for the mechanical engineering industry, enterprises mainly produce supporting industries products to serve the industry of building and repairing ships, boats, producing construction materials, etc. implemented by manual methods and with low content technology.

Ms. Le Thi Minh Phung explained that the cause of the above situation is due to many barriers in technology, cost, supply and demand connecting market, support policies, quality of human resources, planning and technical infrastructure in the development of supporting industry of the whole country in general and Kien Giang province in particular. Besides, the supply capacity of supporting industries companies is limited; There is no link between domestic and foreign enterprises. Even most of Kien Giang’s main industrial products must use imported materials, components, spare parts or bought from other domestic enterprises.

With great determination, Kien Giang province plans to spend about VND 19 billion from local budgets and other capital sources to develop the supporting industry, focusing on mechanical engineering, packaging production, electronic components, MDF wood and footwear.

For mechanical engineering industry, supporting industry products mainly serve the industry of building and repairing ships and boats, production of construction material, agriculture and commercial sector. Particularly for the footwear industry, Kien Giang province has attracted a project with a capacity of more than 6.4 million pairs/year, producing sports shoes for export to the US and EU. This project is currently expanding scale, increasing the capacity of supporting industries such as soles, cheese, mold, printing, pressing, etc.

Besides, Kien Giang province also supports businesses to apply the system of product quality management, enterprise management, production management of supporting industries products in accordance with international requirements. The locality government continue to support enterprises to train, improve the quality of human resources, to meet the requirements of manufacturing industries of supporting products; strengthening links between universities, research institutes, training institutions and businesses; assessing human resource needs of enterprises; Encouraging and facilitating enterprises to implement projects of research, development, application of technology transfer and innovation in manufacturing components and spare parts, etc.

Kien Giang Province will continue to promote supporting industries enterprises in the province to become suppliers of products for industrial production units in and outside the province.

Productivity and Quality Office