Hà Nội's fair on the supporting industry in 2023. The capital city opens such fairs to attract investment and trade activities for its supporting industry. — Photo hanoi.gov.vn

HÀ NỘI — Hà Nội's supporting industry sector has proactively carried out innovation and technology investment to further improve competitiveness and participate in the global supply chain.

Nguyễn Đình Thắng, deputy director of Hà Nội Department of Industry and Trade, said that Hà Nội had determined that the development of the supporting industry would be an important solution to have sustainable economic development, increase the ability to attract foreign direct investment, promote technology transfer, and boost the development of small and medium-sized enterprises.

This would also be a motivation for domestic enterprises to participate further in the supply chain of foreign invested companies and the global value chain of multinational groups.

Among them, the production of components would be the key field to provide supporting industrial products for most key manufacturing industries, such as automobile and motorbike manufacturing, mechanical engineering, electricity and electronics.

In particular, the enterprises in Việt Nam, including Hà Nội, had also taken all business opportunities, promoted digital transformation and linked with foreign partners to participate in the global supply chain.

Nam Phương Company specialising in production of electric equipment located in Sông Cùng Industrial Park, Đan Phượng District, Hà Nội, has cooperated with Intec GmbH, a group from Germany, to produce electrical cabinets and elevator controllers using leading technology from Intec, according to the company's representative.

With this cooperation, the company has produced electrical cabinets and elevator controller products with quality recognised by Intec and much lower prices.

"This is a high-quality new technology elevator controller for all types of elevators, opening up opportunities for Vietnamese customers to use a modern, smart and safe elevator control system," the representative said.

"The company's goal is to become a leading enterprise in supplying controllers on the domestic market, and also to export to other markets such as Malaysia and Singapore."

Trần Thị Phương Lan, acting director of Hà Nội Department of Industry and Trade, said according to the orientation of developing supporting industries for the period 2021-2025 and a vision to 2030, Hà Nội would deploy solutions to promote development of the supporting industry. That would help Hà Nội become a city with a modern industrial sector, high technology and green industry.

The city enhanced promotion activities, online trade connection, and the application of virtual reality technology. It also had support for supporting industry enterprises to carry out advanced and modern technology transfer; and hire foreign experts for training human resources.

Hà Nội built a website about its supporting industry to provide information and data relating to the supporting industry.

In the Hà Nội Supporting Industry Development Programme until 2024, Hà Nội set a goal for 2024 to have about 1,000 enterprises operating in the supporting industry, one year before the schedule. About 35-40 per cent of supporting industry enterprises had production systems and products meeting international standards to supply to the global production network of multinational groups in Việt Nam.

To achieve the set goals, the city would promote connection and support for supporting industry enterprises to become suppliers for domestic and foreign enterprises; and enhance attraction of foreign investment into this industry. In addition, the city would hire experts to help the supporting industry enterprises in Hà Nội deploy smart factory models.

The city would organise two exhibitions on supporting industry in 2024 with the participation of foreign enterprises, including Japan, South Korea, China and Thailand. Those would create favourable conditions for the enterprises to seek opportunities and connect commercial transactions in manufacturing and supplying components.

At the same time, it would support them in the activities of research and development, and technology transfer and innovation in trial production of components, spare parts, raw materials and materials.

Up to now, Hà Nội has more than 900 supporting industry enterprises, according to the department. Of which, about 320 enterprises have production systems and products meeting international standards, and entering the production and supply networks of multinational corporations.

However, the supporting industry's products of Việt Nam as well as Hà Nội have medium and low technology. The localisation rate of those products is still low. The value of components imported into Việt Nam for assembly and manufacturing of export goods annually reaches tens of billions of US dollars. Especially, the import value of components in the electronics and automobile industries stands at about $35-50 billion.

Besides that, according to the Hà Nội Supporting Industries Business Association (HANSIBA), there are many difficulties in investment and development of the supporting industries in Hà Nội due to increasing cost of production, labour and some other services.