Identifying opportunities and challenges of Vietnam's mechanical engineering industry, the article proposes a few recommendations to help Vietnamese mechanics overcome challenges, take advantage of opportunities and develop sustainably in the context of the Industrial Revolution 4.0.
Development situation of Vietnam Mechanical Industry
Mechanical engineering is one of the industries with a long history in our country. Initially, it was manifested in the form of handicrafts creating production tools, weapons ... serving the construction, development and preservation of the country.
During the French colonial period, although this profession was strongly developed, it could not become an industry in the true sense of engineering. It was not until 1958, when Tran Hung Dao Mechanical Factory was built, that the foundation of the mechanical industry was rekindled.
Since then, the industry has developed quite comprehensively, has specialized in a number of areas, the level of technology is also at a certain level and plays a role as the "backbone" industry of social production, supply of equipment, machine tools, movers ... for all economic sectors, meeting the daily needs of the people, making an important contribution to the development of the land economy country.
Identify the important and fundamental role of the mechanical engineering industry in socio-economic development. On October 17, 2003, the Politburo issued Conclusion 25-KL / TW on the development strategy of mechanical engineering industry in Vietnam with specific views and guidelines: “Mechanical engineering is a base industry. foundation, has a particularly important role in the socio-economic development "and" must build the mechanical engineering industry to be competitive enough to rise up in the market mechanism and international economic integration. "
Institutionalizing the Party's guidelines and policies, the Government has promulgated a Strategy on the development of Vietnam's Mechanic industry till 2010, with a vision to 2002, mechanisms and policies to prioritize the development of a number of specialties and key mechanical products.
The Prime Minister issued Decision No. 10/2009 / QD-TTg of January 16, 2009, on the mechanism to support the development of production of key mechanical products and the List of key mechanical products and the List of key mechanical products. key investment projects on manufacturing mechanical products, period 2009-2015; Decision No. 1791 / QD-TTg dated November 29, 2012 of the Prime Minister approving the mechanism of pilot implementation of domestic design and manufacture of equipment for thermal power plants in the period 2012-2025; Decision No. 1556 / QD-TTg dated October 17, 2012 of the Prime Minister approving the Project "Supporting the development of small and medium-sized enterprises (SMEs) in the field of supporting industries"; Directive No. 494 / CT-TTg dated April 20, 2010 of the Prime Minister on the use of domestically-produced materials and goods in bidding for projects using state capital.
Taking advantage of the attention and support of the Government and the Vietnamese mechanical engineering industry in recent time has achieved certain results.
Specifically, some fields recorded changes and breakthroughs such as: Manufacturing hydraulic equipment (providing for large and small hydroelectric plants throughout the country), manufacturing oil and gas drilling rigs ( supplying oil and gas exploration and exploitation drilling rigs to a depth of 120m, self-elevating drilling rigs of 90m water, oil well-drilling rigs), electric equipment, manufacturing and supplying equipment for cement and shipbuilding plants. types (oil tankers with tonnage of 105 thousand DWT, liquefied gas tankers with a tonnage of up to 5,000 tons, bulk carriers, etc.), complete works and equipment (sugar plants with a capacity of 1,000 tons of sugarcane / day, processing rubber latex with a capacity of 6,000 tons / year).
Domestic mechanical engineering has also produced and assembled almost all types of cars, trucks and passenger cars; Motorbike production has the localization rate of 85-95%, meeting domestic demand and export.
A number of research and design agencies and mechanical manufacturing enterprises have been gradually renovating and improving their consultancy, designing and manufacturing equipment and technology capacity, taking part in implementing a number of bidding packages of projects. national key projects.
The number of mechanical enterprises increased rapidly, from about 10,000 enterprises (in 2010) to more than 21,000 enterprises in 2016, accounting for 28% of total manufacturing enterprises, creating jobs for more than 1 million workers, accounting for 17% of the total number of employees. in processing industry. According to calculations by the Institute of Industrial Strategy and Policy (Ministry of Industry and Trade), the industrial production value of the Mechanics industry in 2015 accounted for 16.36% of the production value of the processing and manufacturing industry.
According to statistics, in 2016, the export turnover of mechanical products also reached over 13 billion USD, mainly of all kinds of home appliances and spare parts of cars and motorcycles. If including all kinds of iron and steel, the export turnover of mechanical products of Vietnam in 2016 reached over 16 billion USD. These results have partly contributed positively to socio-economic development and accelerated industrialization and modernization of the country.
Although certain results have been achieved, Vietnam's mechanical engineering industry is still limited, reflected in the following specific aspects:
Firstly, about the market: Mechanical industry has a variety of products but the competition from imported products is quite fierce. The market expansion is still difficult due to the lack of market information and the competitiveness of domestic enterprises is not strong enough.
Even in the domestic market, mechanical enterprises are also difficult to participate in investment projects to install equipment in the steel, chemical and energy industries, mainly due to the lack of quality control systems. products according to international standards; Businesses, mechanical products in the country have not built a brand and are known by many potential customers. Moreover, commitments on free trade also put pressure on domestic enterprises when the barriers to protect domestic production are removed.
Secondly, on the level of science and technology: The practice shows that Vietnam's Mechanical Industry has very few inventions, patents, equipment and technology level of the whole industry. . The mechanical enterprises lack output for products, so they do not have the opportunity to accumulate and invest in technological innovation. With the Industrial Revolution 4.0 (CMCN4.0) taking place, new technologies have completely changed the current production methods and modes, imposing urgent requirements on technological innovation and updating. for mechanical businesses.
Thirdly, in terms of raw materials: Raw materials for Mechanical industry are mainly iron and steel and non-ferrous alloys, most of these materials have not been domestically produced, so they must be imported.
Fourthly, on human resources: Manpower of Vietnam Mechanic industry is lacking and weak both in quantity and quality. The number of skilled mechanics has decreased, and the number of professional workers lacks international vocational certificates and foreign language skills. The research and development force, first of all, the design consultancy team has not reached the level, meeting the requirements of works and projects on synchronous mechanical equipment.
Fifthly, the role of industry associations has not been effective: Industry associations have not promoted their representation in the collective opinion and action; It has not attracted the participation of mechanical enterprises and has not closely linked the member businesses together. Currently, Vietnam Association of Mechanical Engineering has just attracted the participation of more than 100 enterprises out of a total of over 21,000 mechanical enterprises.
The cause of these shortcomings and limitations is that most domestic mechanical enterprises have small-scale production and average technological level, which has not yet confirmed the market capacity. Some foreign firms have strong brands but in Vietnam, they mainly assemble for local consumption; The level of cooperation and cooperation is still low, not promoting the power of division and production cooperation; Fixed capital for mechanical production is often large, working capital is low, so it is difficult for mechanical enterprises to raise capital, and mechanical projects are therefore less attractive to commercial banks. compared to projects in other fields.
The overlap in management also restricts the development of the mechanical engineering industry, the monopoly of technology and equipment monopoly limits the assignment of specialization, delayed technological and technological innovation in mechanical production. gas, uneven product quality, high production costs.
The development of standards and techniques of the mechanical engineering industry has not been given adequate attention, and is not synchronized with the support of activities of inspection agencies according to the registered standards and regulations; Bidding criteria in many cases also create advantages for foreign businesses to win bids; Conditions for negotiating the procurement of machinery and equipment are often detrimental to domestic enterprises ...
Opportunities and challenges for Vietnam Mechanical Industry in the Industrial Revolution 4.0
According to experts' assessment, Industry 4.0 has an important impact on mechanical production in the present and in the future, especially on technology management issues, production management ..., specifically : Industry 4.0 will bring many opportunities for the development of Vietnam's Mechanical Industry, which are:
Firstly, CMCN 4.0 allows mechanical enterprises to access information, access to knowledge, access to advanced technologies ...
Secondly, CMCN 4.0 with breakthroughs in new technologies greatly reduces robot manufacturing and operating costs, drastically reducing production costs of additive manufacturing technology (3D printing technology), due to That increases the ability to apply robots, embankment technology to replace cutting technology in mechanical production for countries with limited economic potential such as Vietnam.
Third, Industry 4.0 is an opportunity for Vietnam to "leapfrog". Vietnam's mechanical engineering industry has not yet been developed, the scale is small, so the inertia is small, the risk may not cause too much loss.
Fourthly, mechanical workers are eager to learn and quick to adapt to new things, so it is very easy to adapt to new opportunities and technologies from Industry 4.0. , improve proficiency, create and capture advanced technology for application.
Fifthly, with quick access and flexible application of achievements in Industry 4.0, the mechanical engineering industry of Vietnam will have many opportunities in improving technology level, increasing productivity, shortening time. time to bring products to market, produce products with quality, competitive prices ... thereby, changing the way of management and management in mechanical production.
Besides opportunities, Industry 4.0 also brings many challenges to Vietnam's Mechanical Industry, which are:
Firstly, in Industry 4.0, mechanical workers may have difficulty in finding jobs, because manual jobs will be automatically replaced by robots and automated machines. The formation and development of the mechanical workforce equipped with skills and qualifications to exploit and master technologies and new modes of operation are also a big challenge for human resource training. Mechanical force in our country today.
Secondly, our mechanical engineering enterprises are mostly small and medium-sized enterprises, not yet capable of competing, not ready to access new technologies. Many enterprises are still passive in new development trends, not ready to change the business organization model, in which, competition pressure is increasingly fierce and facing pressure on investment resources to convert, innovation, breakthrough.
Thirdly, CMCN 4.0 with new technologies, especially 3D printing technology (additive technology) has completely changed the traditional cutting technology of Vietnam Mechanic industry. This technology allows customers to order products with customized designs and be produced at a faster rate and in the world, this technology is changing rapidly, not limited to manufacturing. products made from plastic materials, now metal materials are being applied this technology.
Not to mention, mechanical production systems in Industry 4.0 must be systems with deep connectivity, identification, data collection and exchange such as Cyber Physical Systems or Internet of Things are considered key technologies. has not yet been implemented in mechanical production in our country.
Issues raised for Vietnam's Mechanical Industry
From the analysis of development practices, the limitations, challenges and opportunities of the Mechanical industry in the context of Industry 4.0, in order to promote the sustainable development of Vietnam's Mechanical Industry, the Vietnam Mechanical Development Strategy needs The following issues should be addressed and addressed:
- About the market: Creating a market is a prerequisite for developing, handling trade fraud and the widespread importation of used equipment.
- Regarding investment capital: Create a long-term loan source, with a stable interest rate according to the characteristics of production investment for Mechanical enterprises.
- Regarding bidding activities of domestic constructions and projects: Issue bidding regulations in such a way as to contribute to raising the utilization rate of domestically-produced supplies and goods and managing general contractors' packages. in the form of Contract of design, supply of technological equipment and construction of works (EPC) of machinery and equipment, in order to create a market for domestic mechanical enterprises.
- Regarding industrial promotion, investment promotion and trade promotion: Develop mechanisms and policies to support production and encourage the domestic consumption of mechanical products in compliance with international commitments. of Vietnam.
- Regarding business linkages: Deploy business connection programs to strengthen links and joint ventures between domestic enterprises and large enterprises in the world in the value chain to access technology and standardized products.
In order to achieve the goal of 2035, Vietnam Mechanical Industry is developed with the majority of specialties with advanced technology, product quality of international standards, further participating in the global value chain, basically meet the demand for mechanical products of the domestic market; Export output reaches 45% of the total mechanical engineering output, in the coming time Vietnam should synchronously deploy the following strategic solutions:
Firstly, completes the system of mechanisms and policies synchronously and strongly enough to support the development of the Mechanical industry. In the immediate future, the Government should formulate and promulgate a decree on development of manufacturing industry.
Secondly, develop downstream industries in the field of large-scale mechanical engineering in the supply chain to create opportunities for domestic mechanical enterprises to participate in supplying spare parts and components for manufacturing enterprises. Manufacture and assembly of final products. In particular, focusing on developing mechanical industries with development potential such as automobiles, industrial equipment, household engineering and tools ...
Thirdly, improve the quality of trade promotion activities, attract investment from branded mechanical enterprises in the world to gradually form the domestic supply chain and seek to expand export markets. for domestic mechanical enterprises.
Fourth, build and update the database on mechanical enterprises; effective implementation of business connection programs, linking domestic enterprises with foreign businesses. At the same time, improve the quality of statistics as a basis for industry analysis and forecasts.
Fifth, ensure long-term loans with stable interest rates for mechanical enterprises through support programs, preferential packages in accordance with domestic regulations and international commitments.
Sixthly, quickly completed the standards and regulations for mechanical products, and at the same time, developed and enhanced the capacity of inspection and testing agencies according to standards and regulations. Registered.
Seventh, establishes and develops a system of management, evaluation and certification of national vocational technical certificates, especially for vocational skills in the field of mechanics; Develop incentive mechanisms to encourage linkages between training institutions and businesses in training activities and develop training programs and curricula that are appropriate to reality.
References:
- Conclusion 25-KL / TW of October 17, 2003 of the Political Bureau on the Strategy for development of Vietnam's Mechanical Industry;
- Decision No. 10/2009 / QD-TTg of January 16, 2009, on the mechanism to support the development of production of key mechanical products and the list of key mechanical products and the list of production investment projects. key mechanical products, period 2009-2015;
- Decision No. 1791 / QD-TTg dated November 29, 2012 of the Prime Minister approving the mechanism of piloting the design and die-making of equipment for thermal power plants in the period of 2012-2025;
- Directive No. 494 / CT-TTg dated April 20, 2010 of the Prime Minister on the use of domestically-produced materials and goods in bidding for projects using state capital.
