In the Da Nang economic development strategy by 2030 with a vision toward 2050, the mechanical industry plays an important role in speeding up the development of high-tech industry as well as supporting the growth of other economic sectors. In addition to great efforts by each enterprise, in recent times, the city has issued supportive policies to increase the competitiveness of mechanical enterprises citywide.

Representatives of the Da Nang Department of Industry and Trade, Samsung and Minh Thinh Loi Co.Ltd signed a cooperation agreement to implement the project. Photo: MAI QUE

Efforts to innovate technology

Operating since 2007, the Minh Thinh Loi Production - Trading Co. Ltd in Hoa Hai Ward, Ngu Hanh Son District, Da Nang is one of the city’s modern mechanical enterprises in the field of design, mold manufacturing and production of plastic products in the supporting industry. Currently, the company's products are not only consumed domestically but also exported to such foreign countries worldwide such as United States, Japan, South Korea and Spain, etc.

As reviewed by Mr. Nguyen Thanh Minh, Deputy Director of the company, in order to meet the needs of the international market and increase the ability to connect with global partners, the company has invested in many advanced equipment such as high-gloss molds with a speed of 40,000 rpm; along with large-sized machines to produce large molds, applying automatic technology running overnight to serve the production in a smooth and quick manner. These technologies really help minimize errors and increase accuracy in each stage of production, from raw material preparation to product completion.

A positive signal was recorded in mid-October 2024 when the company was one of the three enterprises supported by the Da Nang Department of Industry and Trade to join a cooperation programme to deploy a consulting project for the development of smart factories in Da Nang with the companionship of Samsung. Through that, the company hopes to improve its human resource management methods and human resource quality.

Meanwhile, the Chau Da Cp.Ltd was one of the first few mechanical enterprises to be certified as a science and technology enterprise by the Da Nang Department of Science and Technology (in 2016).

The company manufactures and processes precision mechanical products, components, and manufactures mechanical machinery products to serve the production of many large companies in the city as well as domestically such as Daiwa Viet Nam, Universal Alloy Corporation Viet Nam, Truong Hai Group, in addition to exporting to south Korea and Japan.

Mr. To Tan Trung Dung, Director of the company, said that in order to keep up with the requirements of technological innovation, most of the company’s workload has been automated by high-tech machining machines. Previous work such as taking materials, turning and milling all had to be done manually, but now the machine performs it automatically according to the programmed programme.

However, the company is renting a small factory, so it is difficult to invest in machinery and infrastructure in a synchronous manner. The company hopes to soon have a suitable land fund to stabilise production because renting a factory is only temporary.

Continue to support businesses to increase competitiveness

According to the Da Nang Department of Industry and Trade, the whole city has about 110 enterprises capable of participating in production in the supporting industry sector, accounting for 6.3% of the total number of industrial enterprises across the city.

Mechanical enterprises can be temporarily classified: enterprises investing in new technology with high-tech processing centres such as Huynh Duc Trading - Service and Production Co.Ltd, the Minh Thinh Loi Production - Trading Co.Ltd; enterprises manufacturing construction structures such as Ha Giang - Phuoc Tuong Mechanical JSC, VNECO.SSM Steel Structure Manufacturing JSC; rnterprises trading and contracting for the construction and installation of electronic equipment, telecommunications electronics such as Vina Toan Luc Electronic and Telecommunication Trading - Service and Import JSC, Viet Nam Engineering Co.Ltd.

The number of enterprises operating in the field of supporting industry for the mechanical engineering industry, especially enterprises manufacturing products in the list of priority supporting industrial products for development, is still quite modest, with about 52. These enterprises are mostly domestically-invested ones. 

The added value of the mechanical engineering industry (excluding the automobile and vehicle assembly and manufacturing industries) accounts for 14.4% of the total added value of the entire processing and manufacturing industry in the city, of which the supporting industry for the mechanical engineering and machinery manufacturing industry accounts for only about 1.9%.

In order to develop supporting industry enterprises in general and mechanical enterprises in particular, the Da Nang Department of Industry and Trade has granted VND 2 billion worth of support to 5 enterprises and projects according to Resolution No. 20/2016/NQ-HDND dated August 11, 2016 of the municipal People's Council on regulations on content and funding levels to support investment in developing supporting industries in the city and Resolution No. 206/2018/NQ-HDND dated December 19, 2018 of the municipal People's Council amending and supplementing a number of articles of Resolution No. 20/2016/NQ-HDND.

In the 2022 - 2023 period, the Da Nang Department implemented Resolution No. 53/2021/NQ-HDND dated December 17, 2021 released by the municipal People’s Council on regulations on policies for developing supporting industries in the city with allocated resources of more than VND 4.2 billion.

Accordingly, the department supported businesses to improve management efficiency and participate in trade promotion, research and development, along with apply technology transfer. Notable activities included conferences to connect supporting industries, the exhibitions of supporting industries and manufacturing and processing, and cooperation programmes for consultancy on developing smart factories in 2023.

According to Mr. Nguyen Van Tru, the Deputy Director of the municipal Department of Industry and Trade, from September to December 2024, this agency and Samsung are actively jointly supporting three Da Nang enterprises: Da Nang Rubber JSC, the Minh Thinh Loi Production and Trading Co., Ltd and Trung Khoa Printing Co.Ltd to develop smart factories.

The city has been implementing many digital economic development programmes, including piloting the smart factory model. At the same time, many resolutions and projects have been issued to support enterprises in digital transformation, applying new technologies, in order to improve competitiveness and participate deeply in the global supply chain. For the programme to achieve the expected results, businesses need to proactively take advantage of opportunities, make efforts to deploy, acquire new knowledge and skills, and apply them to production practices in the most effective way. The municipal Department of Industry and Trade is committed to accompanying the program, contributing to creating sustainable values for businesses and economic development in the city.

With regard to the production premises of enterprises, the department is completing the review, evaluation and scoring of investment registration dossiers in Cam Le Industrial Cluster to synthesize and report the selection results to the muncipal People's Committee. The department will soon complete the report on the regulations on criteria for selecting investors to build technical infrastructure for Hoa Khanh Nam and Hoa Nhon 1 industrial clusters.

Reporting by MAI QUE - Translating by A.THU