INDUSTRIES

Vĩnh Phúc becoming centre of support industry for car and motorcycle production

Vĩnh Phúc is now one of the key industrial hubs in the north thanks to large foreign direct investment (FDI) inflows into manufacturing.

 

297413 13 3 | FDI Việt Nam
Workers assemble motorbikes at the Honda Vietnam in the northern province of Vĩnh Phúc. — VNA/VNS Photo

HÀ NỘI — Vĩnh Phúc Province has set a target of having more than 50 businesses eligible to become first-and second-tier suppliers for manufacturers of automobiles, motorcycles and electronic products, as well as partial suppliers for large export enterprises by 2025.

According to Deputy Director of the Department of Industry and Trade Hoàng Xuân Phú, this is part of a special programme issued by the province to support small and medium-sized enterprises between 2022-2025.

The province has identified priority fields to boost linkages between domestic and foreign firms, including motorcycles; electronic appliances; agricultural machinery and mechanical engineering; and automobiles and auto parts.

Vĩnh Phúc is now one of the key industrial hubs in the North thanks to large foreign direct investment (FDI) inflows into manufacturing.

According to the provincial People’s Committee, in the first half of this year, the province lured US$360 million or 60 per cent year-on-year increase. Most of the foreign-invested enterprises (FIEs) operating in the province are focusing on manufacturing, from motorbikes and automobiles to electronics.

Data released by the Vietnam Association of Supporting Industries (VASI) indicates that the province now has only 16 local enterprises serving as tier-1 suppliers for large FIEs in terms of automobiles, motorbikes, and electronics, ranking the fourth nationwide.

Vĩnh Phúc is currently the leading hub in the domestic motorbike industry, attracting large-scale projects. It has a multi-tiered motorbike supply chain, with domestic enterprises present at all tiers.

Besides supplying to Honda and Piaggio, domestic suppliers participate in many other supply chains, such as the motorbike chains of Yamaha and Vinfast, the consumer electronics supply chain of LG and Panasonic, the agricultural machinery supply chain of Yahata, and the automotive supply chains of Toyota and Honda.

To boost the auxiliary industry in the province, some enterprises wanted the Government to ease strict regulations to allow importing of good quality used machines and equipment.

The province leaders were also asked to set aside a separate region for manufacturing and supporting industry to help minimise impacts on the environment.

To achieve this, the province has amended its policies on promoting linkages in these industries. In addition, the province plans to establish a working group dedicated to connecting domestic enterprises with FIEs.

Theo Vietnamnews