Ninh Binh heeds automobile industry development

Defining the support industry and the automobile assembly and manufacturing as spearhead sectors of the local economy, the northern province of Ninh Binh has in the past few years adopted incentives and policies to develop these fields.

Ninh Binh heeds automobile industry development

Car assembly line in Huyndai Thanh Cong Automobile JSC.

The reality shows it is the right oriention of the locality, as evidenced by the growth of automobile industry and its contribution to the state budget and job generation for local people in recent time.

In 2007, Huyndai Thanh Cong Automobile Joint Stock Company was built with total registered capital of 300 billion VND in Gian Khau Industrial Park. After 10 years of operation, Hyundai Thanh Cong has made a great contribution to the province's socio-economic development.

In 2017, the company assembled over 18,900 vehicles, made a production value of 5,068 billion VND, and contributed 3,040 billion VND to the state budget. In 2018, the company's output increased sharply, reaching more than 55,000 units, contributed to state budget 7,600 billion VND, and created job for 3,900 people with average monthly salary of 6 million VND each.

The rapid growth in production capacity of Huyndai Thanh Cong Automobile Joint Stock Company has prompted the growth of the support industry in the province. A number of local enterprises have made heavy investment in the support industry and reaped good results.

Noteworthy is ADM21 Vietnam Co., Ltd. which has the capacity of producing 20 million windshield wipers a year and has exported a large quantity of products to such markets as the Republic of Korea, the United States and France.

Sejung Joint Stock Company has a total investment of 443,4 billion VND, and is capable of making 570,500 products per year, mainly exhaust pipes, exhaust components.

Besides, some enterprises which engage in manufacturing conductor wires, jointing ring and others, are going to become operational in the time to come.

Despite these efforts, the province's automobile industry is, however, facing a number of difficulties like incomplete industrial infrastructure and small industrial parks which pose challenge for plants located there to expand the scale of their production.

Besides, a low ratio of local contents, and simple products produced by local enterprises such as tubes, tires, wire, paint and some plastic furniture are seen as disadvantages of the locality. Meanwhile, businesses have imported high value products, such as engine and engine details, vehicle transmission system, body frame, and car door brakes.

In order to increase the attractiveness of its automobile manufacturing and support industry, in the coming time, Ninh Binh will pay attention to building and promulgating support policies and incentives for their development.

The effort will include renovating promotion work, boosting investment attraction, prioritizing resources for investment in construction, and providing complete urban and transport infrastructure.

Expanding Gian Khau Industrial Park to meet the demand for expanding production of Hyundai Thanh Cong and completing infrastructure of some other industrial clusters to attract investment projects into the automobile assembly and the support industry will be done in the near future.

Other works will include simplifying administrative procedures, and effectively implementing solutions to remove difficulties for enterprises under the spirit of Resolution No. 19 of the Government, and atthe same time, encouraging domestic enterprises to cooperate with foreign investors, and continuing to call for more investment, especially FDI, into developing the automobile and support industries.

Translated by Nguyen Thuy