Is the mechanical industry in a lagging trend?

The report of the Ministry of Industry and Trade at the conference on solutions to promote the development of Vietnam’s mechanical industry on September 24, 2019 showed that up to now, domestic mechanical enterprises have only met 32% of the demand. demand for mechanical products that the economy needs.

This figure is much lower than the target set out in the Vietnam Mechanical Industry Development Strategy, issued from 2002 to strive to meet 45-50% of the mechanical product’s demand by 2010. country.

“Heaven policy, life on earth”

According to experts, macro policies for the development of the mechanical engineering industry in recent years have been built quite fully and methodically, but when they are implemented ineffectively, there is a degree of decision-making and implementation. big deviation, causing the mechanical industry to develop slowly and still have many limitations. Some experts have compared: “Policy is in heaven, life is on earth”.

Specifically, the Vietnam Mechanical Industry Development Strategy to 2010, with a vision to 2020, has been issued by the Government since 2002, but until 2011, even 2014, many new policies have been implemented. Not only that, the organization and implementation of these policies are also inconsistent.

For example, there is a credit policy in accordance with the Strategy for the development of the mechanical engineering industry approved in Decision No. 186/2002 / QÐ-TTg, but in fact very few enterprises have enjoyed these incentives and so far have not still works.

Next, in 2009, the Prime Minister issued Decision 10/2009 / QD-TTg on the mechanism to support the development of production of key mechanical products and the list of key mechanical products, the list of honor investment project to manufacture key mechanical products (period 2009 – 2015).

On the basis of the list of products eligible for incentives under the program, many mechanical enterprises have actively “prepared” to research and manufacture quality products in the category of preferential treatment, but in reality. , the support is not adequate as prescribed.

According to the report of the Ministry of Industry and Trade, by the end of 2015, only 11 projects were considered for preferential credit policy, but in the end, only 3 projects were signed with credit contracts with the Development Bank. Vietnam (VDB) with the amount of 374 billion VND out of the total amount of 9,978.18 billion VND (equaling 3.75% of the considered capital) and the actual disbursement of 60.75 billion VND (equal to 16% of the contract Signed).

For small and medium enterprises, the incentive and incentive policy mechanism is narrower.

In 2012, the Prime Minister continued to issue Decision 1791 / QD-TTg approving the mechanism for piloting, designing and manufacturing equipment for thermal power plants in the period 2012 – 2025 with the general goal of create conditions for domestic mechanical engineering enterprises to step by step improve their capacity, proceed to master technology of design and design manufacturing for thermal power plants, and promote the development of the domestic mechanical industry.

Accordingly, the following 11 synchronous auxiliary equipment systems in the scope of Song Hau 1 thermal power plant projects, Quang Trach 1, Quynh Lap 1 are separated from the EPC package and delivered to domestic enterprises. perform. The implementation value of these systems accounts for about 30% of the total equipment value of a coal-fired thermal power plant.

However, in the recent report of the Institute of Mechanical Research (Narime), no one of the 3 projects has been implemented as required in Decision 1791. So far, up to now. The domestic mechanical enterprises have not had the opportunity to implement the related contents in the above decision.

According to the Vice President and General Secretary of the Vietnam Association of Mechanical Enterprises (VAMI) Nguyen Chi Sang, the ineffective and not strictly enforced oriented policies not only make the domestic mechanical enterprises. Losing opportunities for more jobs, capacity building, but also hindering the set goals and inhibiting the national economy.

Need the stability of the policy

With the characteristics of requiring a large capital source and a long recovery time, the mechanical industry needs a long-term vision. Therefore, it is necessary to have appropriate policies, especially when the starting point of domestic mechanical enterprises is small and medium, with limited technical and technological levels …

In order to promote the development of mechanical enterprises, especially small and medium enterprises (accounting for the majority), the support for additional resources in terms of capital, land, interest rates, … is very necessary. However, what many businesses are concerned about is not only preferences, but more importantly, the stability of policies.

The ineffective implementation of the guidelines and policies on the mechanical industry in recent years has caused the confidence of businesses to decline, and the market has lost direction.

Therefore, it is time to have fundamental and stronger changes in the direction and organization of the implementation of development policies for the mechanical industry to help businesses have a methodical business strategy and long-term vision. term, creating better development opportunities in the trend of increasingly deep integration.

Determining that mechanics is the “backbone” of social production, providing equipment, machine tools, and engines for all economic sectors, meeting the daily needs of the people, making an important contribution. Focusing on the economic development of the country, the representative of the State Bank said, always oriented to build a preferential credit policy towards small and medium enterprises operating in the mechanical industry.

Regarding the loan results for the mechanical industry, according to the report on credit balance of credit institutions and foreign bank branches, as of July 31, 2019, total outstanding loans credit for a number of mechanical industries reached 294,420 billion.

In which, the outstanding loans for the mechanical and manufacturing industries all tended to increase: the electrical equipment manufacturing industry reached 28,213 billion VND, an increase of 15.38% compared to the end of 2018; Motor vehicle and vehicle manufacturing industry reached 43,767 billion VND, an increase of 40.02% compared to 2018 …

In order to promote the development of the mechanical engineering industry, and create favorable conditions for mechanical engineering enterprises to access credit capital to serve production and business activities, the State Bank proposes to the Government and the Ministry. Industry and Trade should focus on investment with focus, not spreading investment, and at the same time, there should be specific laws, policies, and mechanisms for the domestic mechanical industry when examining and deciding. national key projects using state budget.

For the banking industry, the State Bank also proposed, continuing to direct credit institutions to promote the implementation of the banking – business connection program to create favorable conditions for customers to access bank credit. goods in accordance with the law …

As for enterprises in the field of mechanical industry, it is necessary to improve their organizational, managerial, financial and technological capacities; strengthening links between businesses, building strategic cooperation relationships with partners, building linkages in production and consumption of products.

Regarding the issue of building policies for the mechanical engineering industry, Mr. Ngo Minh Khai, Director of Mechatronics and Explosives One Member Limited Company 31 suggested, should enhance the role of the State in guiding and creating conditions for the development of mechanical engineering through policies on tax, land, credit, and staff training; building technical barriers to protect “soft” for domestic mechanical and manufacturing enterprises to develop.

In particular, there should be policies to prevent the introduction of outdated technology and environmental pollution into Vietnam; It is necessary to create an equal competitive environment between domestic and foreign-invested enterprises; research and promulgate preferential policies for Vietnamese enterprises on tax policies similar to FDI enterprises so that enterprises have the opportunity to compete fairly with FDI enterprises instead of enterprises. seek to circumvent the current law.

Before the need to develop a step-by-step modern mechanical industry, serving as a foundation for other industrial production and service industries; At the same time, Vietnam’s mechanical engineering industry must develop with quality products, low production costs and high competitiveness to participate more deeply in the global value chain, Deputy Prime Minister Trinh Dinh Dung emphasized. strong, must have the efforts of all businesses, associations, experts and scientists.

In particular, there should be a more drastic participation of the State, the Government, ministries, branches and localities in improving as well as creating more preferential and more incentive mechanisms and policies for the mechanical industry. gas aims to create a favorable environment to mobilize resources for the development of Vietnam’s mechanical industry in the coming time.