Slates for Vietnam's mechanical engineering industry in any way?

The mechanical engineering industry is facing many difficulties when the domestic market gradually fell into the hands of enterprises (companies) exchange. Therefore, along with the efforts of enterprises, the support of the state to enterprises overcome difficulties mechanical moment is essential. Experts said that the mechanical support businesses now, the most practical is to reduce taxes.
Enterprises actively seek market
According to Le Van Tuan, General Director of the Vietnam Machinery Installation Corporation (Lilama), Vietnam has joined the World Trade Organisation, FTA, and recently Agreement Trans-Pacific partnership (TPP) ... should have compliance with the commitment of these organizations. Even the Government's capital market nor the government anymore, but international loans as ADB, WB ... so transparent public bidding is required to be done at the request of the organization international credit. Therefore, companies can not expect the government to the market, which have to efforts to find markets for them.

GPMI - GLOBAL POWERSPORTS MANUFACTURING INC

However, it is noteworthy that in the context of international economic integration, but more extensive mechanical DN keeping the old ways of doing business, quality is unstable, slow delivery times, leading to days of foreign orders as lost, while the domestic market gradually fell into the hands of foreign companies. "Losing at home" is the phrase is mentioned most when talking about mechanical businesses in recent times.

General Elictric story corporations (GE) to seek partners in Vietnam ordered as an example. GE, based in Hai Phong and they want to order casting billet in the nearby area to facilitate transportation. GE went surveyed in a mechanical enterprises in Hai Duong. However the survey, the enterprises do not meet the requirements. Finally, though very keen to work for convenience, but also signed a contract last GE still canceled. They had to order another businessman in Taiyuan with prices and shipping costs are much higher. It is worth mentioning, enterprises are GE signed an order of Korean companies based in Taiyuan, rather than any other local businesses.

Thus, the invisible medium, the weakness of domestic engineering firms have pushed the line into the hands of foreign companies, which are mostly Korean, Taiwan. This has many causes, but the main reason is because local businesses do not meet the partner. There are original DN meet but just the initial orders. Then, the quality goes down increasingly losing confidence that partner. That is not to mention, local businesses have signed a contract if it is hard to be competitive delivery schedule by Vietnam no steel materials for engineering that must depend largely on imported raw materials from China. Not to mention the long delivery time, high risk of delays, many foreign engineering companies also do not want to order products with raw materials from China.

The ministry said that the country has about 14,800 engineering firms. However, only 12 enterprises with over 5,000 employees and 116 enterprises with over 1,000 employees. If the scale of 500 billion capital, nearly 100 businesses. Thus, the amount is not much, but very modest scale. While the domestic market is losing, companies must find ways to reach out to the world market by engaging in worldwide chain link of large corporations. Mr. Le Van Tuan said that with the potential of the current mechanical engineering, the construction of a mechanical products 'Made in Vietnam' is extremely difficult. Instead, can build detailed 'Made in Vietnam'. By joining the global supply chain, an entire machinery products can carry other brands, but a machine parts which can still 'Made in Vietnam'. The story of the Thai automotive industry is an example. In fact Thailand has no automotive brand at all, but a lot of details of the Toyota plant in Japan Assembled in Vietnam is Thailand. "Just details 'Made in Vietnam' in the global chain link is a very long quarter," Tuan said.

Along with the efforts of enterprises, the Government's support to enterprises overcome difficulties mechanical moment is essential. Mechanical and businesses that support enterprises mechanical moment, the most practical is to reduce taxes. In fact, engineering firms, mostly located in remote areas, difficult travel conditions. The works are often in areas with harsh living conditions, labor absorption is not simple. Meanwhile, they are subject to the same tax rate for companies based in the central area of ​​Hanoi, Hai Phong, Ho Chi Minh City ... inherent favorable conditions and attract workers easier. Therefore, to encourage and create fairness for businesses, it is thought, along with the tax reduction should be split up into different tax rates. For example, enterprises in Hanoi taxed at 10%, the enterprise Lai Chau only pay 5%. In the middle of the inner city and suburbs should also have different tax rates to encourage investment to remote areas. Mechanical enterprises have said that the current 22% tax is too high. With export duties, should be 0% to encourage enterprises to export and foreign exchange earnings, employment creation and branding Vietnam to the world.

But that was the immediate, but in the long term, businesses need to be proactive mechanical switch gradually from installation to manufacture, build financial stability with good plants, good governance system to be able to convert trades when necessary.