High localization rates and mastering many advanced technologies not only affirm Vietnam’s scientific achievements but also help save a large amount of foreign currency and efficiently curb trade deficits.
Over recent years, many domestic enterprises have assumed to manufacture most of technological equipment for big and key projects. For example, the Vietnam Machine Installation Corporation (Lilama) manufactured main equipment of the Na Duong Thermal Power Plant and Song Thao Cement Plant. It is said that total weight of equipment and steel structure manufactured at Song Thao Cement Plant reached 5,942 and 8,353.2 tonnes respectively, accounting for 71.13 percent of the plant’s total equipment and 40 percent of its value. Thus, Vietnam can entirely manufacture some of the main equipment in cement production line at capacity of 2,500 tonnes of clinker per day. Another example was Vinacomin Machinery Joint Stock Company assumed main responsibility for supplying, manufacturing and installing over 2,500 tonnes of equipment for Bauxite Tan Rai Sifting Plant (Lam Dong Province). Not only creating many manufacturing technologies at high localization rates for big projects of the industry sector, Vietnam’s mechanical industry also left impressive marks in the agriculture sector. For example, the equipment production by Bui Van Ngo Industrial & Agriculture Machinery Co.,Ltd have occupied more than 70 percent of high quality rice processing in the Mekong Delta, where contributes 95 percent of Vietnam’s rice export volumes. Many kinds of equipment like paddy huskers, rice whitening and polishing machines have become familiar with the Mekong Delta farmers and have been used by customers from over 20 countries worldwide.
The praiseworthy thing was that Vietnam has completely mastered some latest and most modern technologies from research, design to production. For instance, Viettel has successfully made a series of modern equipment such as the VQ airspace management equipment, radars and drones. These achievements were not only economical in terms of saving foreign currencies for the country but also opened the possibilities to produce equipment for the armed forces and keep military secrets.
It is known that if Vietnam buys airspace management equipment, it can cost a hundred million dollars and it is highly improbable that technological transfers are included. But when foreign manufacturers learn that Viettel has researched and mastered the technology, they have reduced the price of the equipment to US$60 million or even US$20 million. There are many other high tech products that Vietnamese producers have invented and mastered such as microchips, robots to serve in entertainment activities, heavy industry and medical services.
According to statistics, each year Vietnam imports machines and equipment worth about US$13 billion. Therefore, increased localization rates and technological mastering by more and more domestic enterprises have opened a prospect to stimulate domestic demand, reduce trade deficits and affirm that Vietnam can absolutely develop its own brands. However, to make the “Vietnamese people use Vietnamese technologies” campaign become more effective, the state perhaps should adopt more support policies in terms of capital resources and trade promotion activities to help Vietnamese enterprises during their research and adoption of the new technologies.
Source: VEN