Ho Chi Minh City urged to revive industrial growth: Experts
Ho Chi Minh City needs to review its industrial production to identify shortcomings and barriers, according to experts.
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The city leads the country in many areas like industrialisation – modernisation and innovation, but the contribution of industry to its economy is decreasing, and the industry is losing its leading position in the southeast, they told a conference held in Ho Chi Minh City early this week.
Statistics from the Department of Industry and Trade show that the sector only makes up 18 per cent of the economy, significantly down from 10 years ago.
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| Workers at a factory in HCM City. The city seeks to revive industrial growth — VNA/VNS Photo |
This is due to its limited land availability for industries and enterprises shifting production to neighbouring localities.
Many enterprises still use outdated technologies that consume a lot of resources or are labour-intensive, yielding low value, and this should be changed through technology and innovation, the seminar heard.
The Department reported that the index of industrial production rose by 8.1 per cent year-on-year in April and 1.4 per cent in the first four months.
Despite this positive sign, businesses continue to face difficulties due to a lack of orders and pressure to repay bank loans.
Speaking at a recent seminar, Võ Văn Hoan, Vice Chairman of the city People’s Committee, said the economic structure is being transformed towards services, but the municipal administration continues to pay attention to industry to ensure balanced development.
Bùi Tá Hoàng Vũ, Director of the Department of Industry and Trade, said the city still had certain advantages that other localities could not match.
It would focus on comprehensively developing the hi-tech sector, supporting industries and its four key industrial sectors (electronics, pharmaceutical chemicals-rubber-plastic, mechanical engineering, and food and beverage processing), he said.
It would pay greater attention to key industrial products and those with development potential, and encourage and help enterprises with enhancing digital transformation and green production, he said.
According to experts, the city should add to its four key new industries such as biotechnology, medical and renewable energy equipment manufacture and automation.
It should also focus on six service industries (tourism, finance and insurance, e-commerce, healthcare, transportation and logistics, and educational technology) to complete the industrial eco-system, they said.
Assoc. Prof. Lại Quốc Đạt of the Ho Chi Minh City University of Technology said the four key industries also need extensive reforms.
The mechanical engineering industry should focus on mould technologies, robotics, and the Internet of Things, and the rubber and plastic industry on making products for the healthcare and auto parts sectors, he said.
Nguyễn Thi Kim Ngọc, Deputy Director of the city Department of Industry and Trade, advised local firms to upgrade their technologies, workers’ skills and infrastructure to meet the requirements of the supply chains.
She added that her Department is coordinating with others to spell out industrial development plans for the city until 2030, restructure the industry and promote scientific research and innovation.
(Source: Vietnam Economic News)
