Solutions to develop Vietnam's mechanical industry

To develop the Vietnamese mechanical industry, it is necessary to supplement and adjust a number of new mechanisms and policies to support businesses in this field.

The mechanical engineering industry needs highly skilled human resources to meet production requirements and technological innovation. Photo: Ha Anh

Preferential tax and credit policies

The government should introduce tax incentives to encourage mechanical enterprises to invest in modern technology and machinery. Enterprises involved in the production of high-quality mechanical products with high added value should be exempted from or have their taxes reduced for a certain period of time.

In addition, there should be preferential credit packages for small and medium enterprises in the industry. mechanical. Access to preferential capital will help businesses invest in new technology and improve competitiveness.

Developing supporting industries

The mechanical industry needs support from businesses in the supply chain to develop synchronously. The government should encourage investment in supporting industries through preferential policies on land, capital and tax. At the same time, it is necessary to build specialized industrial zones for the mechanical industry to concentrate resources and create favorable conditions for cooperation between businesses.

Policy to promote research and development (R&D)

Investment in research and development (R&D) is a key factor to enhance innovation capacity and develop new technologies in the mechanical industry. The government can support this by strengthening research funding policies, providing technical assistance and encouraging cooperation between mechanical enterprises and research institutes and universities. At the same time, it is necessary to build a financial support mechanism for enterprises to invest in R&D through innovation funds.

Human resource training and development policy

The mechanical industry needs highly skilled human resources to meet the requirements of production and technological innovation. The government needs to have a policy to train and improve the skills of mechanical workers through the development of specialized vocational training programs and promoting cooperation between vocational schools and enterprises. It is also necessary to create opportunities for engineers and mechanical workers to participate in international training courses to learn advanced technology and skills.

Policy to attract foreign investment (FDI)

Vietnam’s mechanical engineering industry needs to continue attracting investment from international corporations to improve technology and production capacity. The government can create special preferential policies to attract foreign investment in the mechanical engineering sector, including simplifying administrative procedures, providing legal support and creating favorable conditions for investors. At the same time, it is necessary to encourage domestic enterprises to enter into joint ventures and cooperate with foreign partners to transfer technology and develop high-quality products.

Strengthening regional and international connectivity

Promoting linkages between domestic mechanical enterprises and international partners will help improve competitiveness. The government can support through the establishment of specialized regional industrial parks, to facilitate businesses to easily access markets, technology and human resources.

Support access to international markets

The mechanical industry needs government support in expanding export markets. Trade promotion policies, supporting businesses to participate in international fairs, expanding free trade agreements (FTAs) to reduce trade barriers and tariffs, will help Vietnamese mechanical products access international markets more easily. The government also needs to develop specific trade promotion programs for the mechanical industry to increase the export of mechanical products to the global market.

Encouraging digital transformation in the mechanical industry

The application of digital technologies and automation in mechanical manufacturing can help increase productivity, reduce costs and improve product quality. The government can support mechanical enterprises in digital transformation through financial support packages, training and technical consultancy. It is necessary to develop smart manufacturing models and data-based production management systems to optimize production processes.

Supplementing and perfecting mechanisms and policies to support the mechanical industry is necessary to ensure sustainable development and enhance the competitiveness of this industry. The Government, enterprises and relevant agencies need to coordinate closely in implementing policies, thereby helping the Vietnamese mechanical industry gradually approach and rise in the international market.

Source