PM approves development strategy for Viet Nam’s mechanical engineering industry
12:10 | 20/03/2018

VGP – The Prime Minister has approved a development strategy for Viet Nam’s mechanical engineering industry until 2025, with a vision to 2035.

Illustration photo

Accordingly, by 2035, Viet Nam’s mechanical engineering industry will be developed with a majority of technologically advanced professions and products of international standards, while further participating in the global value chain and making economical and efficient use of energy. The sector will develop a professional, disciplined and high-qualified workforce, and be proactive in researching, designing and manufacturing mechanical products to basically meet the demand of the domestic market.

In terms of exports, the strategy targets the mechanical engineering industry’s export volume meeting 35% of its total output by 2020, and the proportion is expected to increase by 40% by 2030 and 45% by 2035.

Until 2025, the industry will focus on developing a number of sub-sectors of automobile mechanics, tractors, agricultural machinery, construction equipment, industrial equipment and electrical equipment, which are capable of basically meeting the requirements of the economy and a part of the export demand. 

After 2025, some groups of advisory and manufacturing contractors, which are capable of mastering the designing works and manufacturing auxiliary equipment groups, will be formed, while efforts will be focused on supporting some domestic firms that have the potential to become strong regional corporations in the manufacturing sector such as automobiles, agricultural machinery and electrical equipment.

The strategy stipulates the continuous revision and supplementation of policies promoting the mechanical engineering industry, including tax incentives, the support measures for investment and business activities; and the continuous review, amendment, supplementation and completion of the support mechanisms and polices for the mechanical engineering industry in accordance with the laws on investment and Viet Nam’s commitments on international economic integration. The strategy will also work to accelerate the development of the supporting industries for the mechanical engineering sector, to increase the proportion of domestic production value, to build a chain of production and assembly of mechanical products in the country, and to facilitate Viet Nam’s participation in the global mechanical production chain.

                                                                                                                            By Vien Nhu

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