Development orientation of mechanical processing industry by 2025

It can be said that after more than 25 years of renovation, Vietnamese mechanical industry has made great efforts to continuously develop and gradually become a key industry, whereby, creating a basis for promoting the development of other industries, producing a wide range of products for serving all agro-forestry-fishery, industry, service and tourism as well as serving domestic demands; initially reaching out to foreign markets.

However, besides achieved positive results, mechanical processing industry in our country still has many limitations. Generally the domestic mechanical processing technology is still backward, simple; technical level is estimated to lag behind about 2-3 generations compared to other countries in the same region. In addition, according to figures reported at the workshop ” Development Strategy of Vietnam’s mechanical industry” in Hanoi in 2015, total import value of mechanical engineering branch in 2014 was 26.53 billion USD, In addition, according to data reported at the workshop “Strategy for development of mechanical engineering industry in Vietnam” took place in Hanoi in 2015, total import value of mechanical engineering branch in 2014 is 26.53 billion USD, meanwhile, export value was only 15.23 billion USD. This shows that domestic enterprises must make greater efforts to develop the key industry in order to gradually increase excess of export rate.

To make it become real, it requires great support from the State in the strategic planning as well as development orientation of mechanical processing industry in the coming years.

The development orientation of the industry

Regarding development orientations and general objective by 2025 of Vietnamese mechanical industry, enterprises should take advantage of the available strengths of the region; invest in developing the industry in areas with good infrastructure. Along with this, gradually form of supporting industries to serve the demand of the overall development of mechanical engineering branch; simultaneously modernize the existing equipment, technological innovation, digital application in design and manufacturing. In addition, the development strategy by only 2025, mechanical industry density will account for over 21% of the industrial structure and meet more than 50% of the domestic market demand. To carry out this, the State needs to focus on improving the management efficiency of the industry to increase investment efficiency and production in mechanical enterprises.

Not only that, in the long term, the best development orientation of mechanical industry is to focus on research and development of new machine generation, as well as transfer technology for production facilities. Moreover, the State should encourage and support enterprises in upgrading technology in the mechanical processing and expand the manufacturing operation of equipment lines for the fields using imported lines and equipment. Specifically, the key products and fields that Vietnam’s mechanical industry should be focused on in the coming time are:

• Motor machine: in-depth investment, modernization of CIM equipment and technology, and development of motor manufacturing industry to become a strong industrial sector of Vietnam.
• Complete equipment: Use human resources and capital to invest in equipment and high-technology CAD / CAM (Computer Aided Design / Computer Aided Manufacturing) for applying to the basic stages such as casting, forging, making large rough shape to synchronize the equipment and technology to meet the requirements for manufacturing large and complex parts, parts assembly. Particularly focus on manufacturing equipment with high complexity to replace imported products and step by step export, enhancing the capacity of manufacturing complete equipment by more advanced technology than today.
• Machine tools: In addition to trying to call for foreign investment in machine tools manufacturing facilities in the region, the mechanical agencies will coordinate with the powerful research centers of the two ends of the country to study for design and manufacture of modern machines using PLC, CNC, NC technology and special processing equipment.
• Tractors and agricultural machinery: Apply technology of producing rough shape, powder coating, automatic assembly line to improve productivity and quality.

• Construction works: in-depth investment into construction machinery manufacturing facilities with modern equipment and technologies to meet basic production demands.
• Electrical Equipment: Strive to build modern electrical equipment manufacturing industry. It will reach the advanced level of electrical equipment and electrical material in the region by 2025.
• Automobile engineering and transport engineering: develop the automobile industry on the basis of acquiring and applying advanced technologies of the world CNC, CAD / CAM combining with exploitation and gradual improvement of existing technology and equipment.

• Shipbuilding engineering: develop Vietnam’s shipbuilding industry in the orientation of becoming a specialized economic-technical industry synchronized from training, study and design to manufacture and consumption of CIM products, PLC, CNC, NC, CAD/ CAM technology to meet the renovation requirement of ship’s structure in Vietnam, at home and abroad.

With the clear and positive development orientation of mechanical processing industry, hopefully in the coming years, the industry will achieve more desirable results to gradually promote Vietnam’s economy more and more strongly in this challenging integration period.

By Marketing Department – Kizuna JV Corporation