Quang Nam pioneers new model for support industry development

Quang Nam pioneers new model for support industry development

Quang Nam province will soon boast Vietnam’s largest industrial park (IP) for components and spare parts, aimed at boosting mechanical engineering and supporting industries identified as key prioritized areas.

Thaco invests strongly in developing supporting industry products

Linkage to join the production chain

The supporting industry in the central Vietnamese province manufactures components and provides raw materials for automobile production, mainly in the Chu Lai Open Economic Zone (EZ) with its five concentrated IPs. With outstanding preferential policies offered to Chu Lai Open EZ, the Chu Lai-Truong Hai Auto Mechanics Industrial Park has become the largest center of the automotive engineering industry in the country. So far, the IP has 23 companies and factories manufacturing and assembling automobiles, as well as components and spare parts.

Truong Hai Auto Corporation (Thaco), for example, is becoming a locomotive in developing supporting industries in Chu Lai Open EZ having established enterprises capable of supplying assembly enterprises, especially FDI enterprises, and large enterprises in the province and the central key economic region. At the same time, it has gradually acquired the capability to design and manufacture complex components and assemblies and attract investment in mechanical supporting industries requiring high and modern technologies.

So far, Quang Nam has attracted effective investment projects like Chu Lai Floating Glass, Dong Tam ceramic tiles, large tourism projects of Indochina Capital, VinaCapital, Victoria, Golden Sand, Palm Garden, laying the foundation for sustainable development.

A multi-use mechanical center

At a recent online meeting on the development of the mechanical industry’s supporting industry with enterprises in the southern provinces and Ho Chi Minh City, Le Tri Thanh, Chair of Quang Nam Province People's Committee said that Thaco Chu Lai is attracting investment to develop into a multi-industry ecosystem with synchronous, ecological and smart infrastructure in Quang Nam, connecting it with the Central Highlands, Laos and Cambodia. “Quang Nam recommended to local mechanical engineering enterprises and others in southern provinces to participate in its production value chain,” Thanh emphasized.

Thaco Chair Tran Ba ​​Duong said one of the group's tasks is to develop a multi-purpose mechanical center for Quang Nam and the central region. Currently, Thaco's mechanical companies in Chu Lai are the most complete mechanical facilities in terms of equipment, machinery and the largest force of engineers and skilled workers in the country.

Thaco also wants to develop mechanical engineering and supporting industry in order to be more proactive in auto manufacturing and assembly; increase the localization rate and meet the needs of the domestic and export markets. This model is new in Vietnam and Thaco is a large enterprise that helped turn the Chu Lai Open EZ into a mechanical IP, contributing to the global production value chain.

VietNam Economic News