ID :
38370
Wed, 12/31/2008 - 23:05
Auther :
Shortlink :
http://m.oananews.org//node/38370
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Heavy industries expand market share
Hanoi (VNA) - Domestic heavy industry has expanded its market share, but remains
unable to gain a bigger share than its foreign counterparts two years after the
country joined the WTO.
The country continues to see increasing development prospects two years after
joining, said deputy head of the Heavy Industry Development under the Ministry of
Industry and Trade (MoIT), Ngo Van Tru.
Tru was speaking at a seminar hosted by Vietnamese mechanics and metallurgy and
shipbuilding industries last Friday in Hanoi .
The export turnover of domestic heavy industry in 2008 is estimated to reach 2.8
billion USD, while the figure of 2006 was only 1.17 billion USD, according to the
National Research Institute of Mechanical Engineering (Narime)'s statistics. This is
an increase of 133 percent.
The head director of Narime, Nguyen Chi Sang, said "Vietnamese heavy industry
expanded its market, thanks to FDI enterprises operating in Vietnam together
with the development of supporting industries."
Sang added that local mechanical manufacturing enterprises only account for 10
percent of the domestic market share. However, the remainder belongs to foreign
enterprises.
Chairman of the Vietnam Association of the Mechanical Engineering Industry (VAMI),
Nguyen Van Thu, confirmed: " Vietnam has no advantage, even on its home turf."
Most of the State's direct assistance on price, taxes, and bidding winner
appointments for local enterprises were almost all abolished when Vietnam joined
the WTO. Domestic firms were so weak and unable to be competitive, which lead to
foreign contractors having the advantage. Foreign contractors in the past three
years have gained ownership of 23 hydro-electricity plants, 19 thermo-electricity
plants and 17 cement plants with a capacity of 0.3-2.4 million tonnes of product per
annum. Foreigners also have aluminum, chemical and oil processing factories. Despite
an optimistic figure of export turnover in 2008, Vietnam still had to import
mechanical equipment worth 10-12 billion USD per annum.
The Ministry of Industry and Trade said it would recommend that the Government offer
investment credit to develop heavy industry.-Enditem
unable to gain a bigger share than its foreign counterparts two years after the
country joined the WTO.
The country continues to see increasing development prospects two years after
joining, said deputy head of the Heavy Industry Development under the Ministry of
Industry and Trade (MoIT), Ngo Van Tru.
Tru was speaking at a seminar hosted by Vietnamese mechanics and metallurgy and
shipbuilding industries last Friday in Hanoi .
The export turnover of domestic heavy industry in 2008 is estimated to reach 2.8
billion USD, while the figure of 2006 was only 1.17 billion USD, according to the
National Research Institute of Mechanical Engineering (Narime)'s statistics. This is
an increase of 133 percent.
The head director of Narime, Nguyen Chi Sang, said "Vietnamese heavy industry
expanded its market, thanks to FDI enterprises operating in Vietnam together
with the development of supporting industries."
Sang added that local mechanical manufacturing enterprises only account for 10
percent of the domestic market share. However, the remainder belongs to foreign
enterprises.
Chairman of the Vietnam Association of the Mechanical Engineering Industry (VAMI),
Nguyen Van Thu, confirmed: " Vietnam has no advantage, even on its home turf."
Most of the State's direct assistance on price, taxes, and bidding winner
appointments for local enterprises were almost all abolished when Vietnam joined
the WTO. Domestic firms were so weak and unable to be competitive, which lead to
foreign contractors having the advantage. Foreign contractors in the past three
years have gained ownership of 23 hydro-electricity plants, 19 thermo-electricity
plants and 17 cement plants with a capacity of 0.3-2.4 million tonnes of product per
annum. Foreigners also have aluminum, chemical and oil processing factories. Despite
an optimistic figure of export turnover in 2008, Vietnam still had to import
mechanical equipment worth 10-12 billion USD per annum.
The Ministry of Industry and Trade said it would recommend that the Government offer
investment credit to develop heavy industry.-Enditem
