Mechanical industry development strategy – Vision to 2035

The Prime Minister approved the Strategy for developing Vietnam’s mechanical industry until 2025, with a vision to 2035.
The overall goal is that by 2035, Vietnam’s mechanical engineering industry will be developed with the majority of specialties having advanced technology, product quality meeting international standards, and participating more deeply in the global value chain. , use energy economically and efficiently, compete fairly in international integration; Professional, disciplined and highly productive workforce, proactive in research, design and manufacturing of mechanical products, basically meeting the mechanical product needs of the domestic market.

Regarding the export sector, in the period to 2020, export output will reach 35% of the total mechanical industry output, and in the period to 2030, it will reach 40%. By 2035, it will reach 45% of the total mechanical industry output.
Specifically, by 2025, focus on developing a number of sub-sectors of automobile mechanics, tractors, agricultural machinery, construction equipment, industrial equipment and electrical equipment, capable of basically meeting the requirements. demand of the economy and part of exports; The basic mechanical engineering workforce is qualified to meet the needs of modern production.

After 2025, form a number of consulting and manufacturing contractor groups capable of mastering the design and manufacturing of auxiliary equipment groups and EPC packages of industrial projects; Focus on supporting a number of domestic enterprises with the potential to become strong regional corporations in the manufacturing sector such as automobiles, agricultural machinery and electrical equipment; Forming a system of industrial enterprises supporting the mechanical industry to meet direct supplier standards for enterprises producing finished products, proactively participating in the global value chain, targeting medium and large enterprises. Small plays the leading role.
The strategy sets out implementation policies and continues to review, amend and supplement policies to promote the mechanical engineering industry, including tax incentives (Corporate income tax, import tax), and other support measures. investment and business support according to the provisions of the Investment Law in the direction of simplifying administrative procedures; Continue to review, amend, supplement and complete the system of mechanisms and policies to support the mechanical engineering industry in accordance with investment laws and commitments to international economic integration and socialist market economic orientation. aims to create motivation for the development of Vietnam’s mechanical engineering industry, closely combined with the development of dual-use industry; Promote the development of supporting industries, increase the rate of domestic production value, build a production chain, assemble domestic mechanical products and actively participate in the world mechanical production chain.

Focusing on the Production of Important Mechanical Products

The Prime Minister requested to focus on developing a number of basic materials to serve the mechanical industry, in order to take advantage of the comparative advantage of domestic mineral resources with advanced, highly competitive and technological levels. Environmental friendliness; creating markets in selected sub-sectors, creating a premise for the mechanical industry to master technology and improve manufacturing capabilities. Issue sanctions to protect domestically produced goods in accordance with international commitments.
Attract multinational manufacturing corporations with potential and brand with attractive incentives to implement a focused investment support policy, with a special focus on manufacturing projects. produce important mechanical products that are competitive and have a large enough market capacity; At the same time, focus on investment promotion for small and medium-sized enterprises, especially in the field of supporting industries, in the direction of selecting quality projects with high added value, using current technology. modern, environmentally friendly.
The State has policies to support businesses in purchasing design, technology, technological innovation, production equipment, applying advanced technology and production management models to improve the efficiency of energy and resource use. input resources, improving productivity, quality and competitiveness of mechanical products; diversify and differentiate products. Support for building and developing product brands or supporting mergers and acquisitions of branded global businesses, including R&D to shorten the development process.
The State prioritizes investment in upgrading mechanical training facilities, linking training with practice; Funding support for sending good officials and workers to train and practice abroad according to approved programs and projects, gradually building a force of general engineers and chief engineers.
The State has a mechanism for credit interest rates for investment and working capital loan terms for mechanical equipment manufacturers with large enough market capacity; Build a mechanical industry information system to serve as a database for state management agencies and businesses to share; Promote and promote the role of professional associations in linking businesses in the mechanical engineering industry, overcoming the situation of division and fragmentation in the mechanical industry.