Proposal to establish a large business alliance to help Vietnamese mechanics escape the "fate" of outsourcing

If large domestic enterprises join together, they will be able to create large-scale products and projects. On the contrary, if each unit focuses on one field, Vietnamese enterprises will only be subcontractors and hired workers.

On the morning of September 23, the closing workshop of the Ho Chi Minh City Industry and Trade Development Forum with the theme "Suggestion - Action - International Integration" was held in Ho Chi Minh City.

At the event, Mr. Trinh Tien Dung - Chairman of Dai Dung Construction and Trading Mechanical Joint Stock Company (Dai Dung Group), acknowledged that Vietnam's mechanical industry is currently mainly processing on a small scale, lacking big brands, not deeply participating in the global supply chain and still limited in integration experience.

According to Mr. Dung, after the merger, Ho Chi Minh City accounts for about 23-25% of the national GDP. The city also has great potential in developing the mechanical industry, but it is still fragmented, lacking overall planning and long-term regional connectivity.

Dai Dung Group's leaders hope that large domestic enterprises will form an alliance. Photo: BTC

Meanwhile, with nearly 20 million people in the expanded economic zone, with a dynamic ecosystem of seaports, logistics and business community, Ho Chi Minh City can become the leading heavy industrial mechanical - supporting industry center in Southeast Asia. This center plays a role in replacing suppliers from developed countries today.

To realize the goal, he recommended that Ho Chi Minh City needs to develop a comprehensive strategy for the mechanical industry until 2035, with a vision to 2050. At the same time, state management agencies need to plan specialized industrial zones for mechanics, integrating different ecosystems.

For example, the Suzhou Industrial Park model (China) specializes in precision mechanics, machinery, components for automation, precision tools; Ulsan Mipo & Onsan Complex Industrial Park (Korea) specializes in mechanics, heavy industry, automobiles, shipbuilding, oil refining; Yokohama Smart City Industrial Park (Japan) specializes in precision mechanics, automobiles, robots...

Notably, the Chairman of Dai Dung Group proposed establishing a mechanical manufacturing alliance to link and increase competitiveness. This alliance will be responsible for major projects of the city and Vietnam.

“The alliance includes steel manufacturing companies such as Hoa Phat; locomotive and train manufacturing companies such as Vingroup or Thaco ; technology companies such as Viettel and FPT; mechanical engineering companies such as Dai Dung and Lilama, and many domestic enterprises with the capacity to undertake large projects,” he said.

City leaders at the closing conference of the Ho Chi Minh City Industry and Trade Development Forum, on the morning of September 23. Photo: Organizing Committee

Discussing further with VietNamNet about the above idea, Mr. Dung said that if large domestic enterprises join together, it is entirely possible to create large-scale products and projects. On the contrary, if each unit focuses on a few fields, Vietnamese enterprises will only be subcontractors and hired workers.

However, in order for businesses to be able to cooperate in production, in addition to tax incentives, the State needs to provide a large enough "clean" land fund so that units can gather and produce together, like creating a "playground" for businesses.

Mr. Dung proposed that the State management agency should have a policy in bidding, requiring public projects to localize 60% or more. Increasing the localization rate will create conditions for domestic enterprises to participate in project implementation and infrastructure development. When the potential is strong enough, enterprises are fully capable of exporting products and services to the outside.

The City Industry and Trade Development Forum was organized by the Department of Industry and Trade of Ho Chi Minh City in collaboration with Tuoi Tre Newspaper, UEH.ISB Talent School (Ho Chi Minh City University of Economics), with the goal of gathering the intelligence and enthusiasm of experts, businesses and people to propose solutions to create momentum for the development of industry and trade in Ho Chi Minh City in the new context.

After nearly 3 months of implementing the forum, the organizing committee received more than 150 research papers and suggestions from scientists , experts, association leaders and businesses.

Source: https://vietnamnet.vn/de-xuat-lap-lien-minh-doanh-nghiep-lon-dua-co-khi-viet-thoat-kiep-gia-cong-2445367.html