According to a survey conducted by the Da Nang Department of Industry and Trade, the city is now home to around 100 businesses involving support industries, accounting for 5.8% of the city’s total. They have together created job opportunities for around 37,680 people.

In recent years, Da Nang's support industries have seen many positive signs

The majority of these businesses involve in such sectors as mechanical engineering, packaging, electricity, electronics, automobile and motorcycle, textiles and garments, leather and footwear.

In particular, there are 11 firms specialising in manufacturing automobile components in the city, 15 in electricity and electronics, 9 in textiles and garments, and 25 in hard and soft plastic wrappers.

Ms Nguyen Thi Thuy Mai, Deputy Director of the Department, said the city has to date reached its target set by 2020 for the quality and quantity of supporting industrial products. In addition, the municipal authorities have focused on attracting even more FDI inflows into support industries, thereby promoting the development of small and medium-sized enterprises.

However, she pointed out some shortcomings in the operation of support industries.

In particular, businesses operating in support industries have yet to create their own major products such as consumer goods, equipment and machines due to their outdated equipment and technologies. Most of them are involved in implementing just one stage in the production line, particularly the final stage. This stage usually includes the assembly and finishing of small components of products such as earphones and electric motors.

Besides, most of these businesses find it very hard to access the city’s preferential policies due to their complicated investment procedures. So far, the municipal government has granted nearly 65 million VND from the city budget for only a company to upgrade their production machine and technologies.

Workers at the 29 March Textiles and Garments

Over the past 2 months, some businesses have taken the initiative to renew their technologies in a bid to expand their production scale and capacity.

Some of high-quality supporting industrial products are able to be competitive with imported ones as meeting requirements of domestic and international markets.

Being one of large mechanical enterprises in the city with 100% domestic capital, the Huynh Duc Manufacturing and Trading Service Company is the pioneer in implementing a project to manufacture model products and high accuracy machinery parts in modern production lines.

This project has considered as a great motivation for other local businesses to implement projects about producing industrial products in the mechanical engineering sector, thereby creating closer links with large companies such as the TCIE Viet Nam Co Ltd and the Truong Hai Auto Company.

Another positive sign is that many enterprises, especially those from foreign countries, have paid special attention to seeking domestic suppliers of supporting industrial products. Meanwhile, quality of human resources working in support industries has been significantly enhanced.