Technical degradation of Vietnam's metallurgy and casting

Posted by Vico Casting Export Company Limited at 30/12/2019
Only about 200 of about 500 enterprises operating in casting and metallurgy have enough capacity to meet the foreign requirements of production. This shows that Vietnam's supporting industry is still weak and needs many support policies to stand firm.

Mr. Pham Chi Cuong, Chairman of the Vietnam Association of Metallurgical Foundry and Metallurgy emphasized at the International Conference of Metallurgical Foundry held by the Institute of Materials Science and Technology and Carbon Company on October 7th .

Only nearly 40% of businesses meet the requirements     

According to experts, Vietnam's casting and metallurgy industry is lagging behind in both technique, technology and production scale compared to other countries in the region and the world. Currently, enterprises in the industry mainly only invest in production to supply the needs of the small market. This makes the supporting industry stagnates, causing Vietnam to face an increasing trade deficit.

Mr. Pham Chi Cuong, Chairman of the Vietnam Association of Casting and Metallurgy, said that only about 200 of 500 enterprises operating in the field of foundry and metallurgy have the capacity to meet the requirements of foreign manufacturers.
"That's why many foreign investors in Vietnam only focus on importing equipment, engines and components to assemble components, machines, cars and motorcycles... And that makes trade deficit grows, which is a barrier to our country's industrialization and modernization goals," said Mr. Cuong.

Assessing the limitations and challenges of Vietnam's foundry and metallurgy industry, Mr. Luu Trung Manh, CEO of Carbon said, with such degradation, in the context of strong integration and globalization, the foundry, metallurgy industry in particular and the supporting industry in general are facing many opportunities for development, but the challenge is still more.

 The policies has not yet "affected" businesses

At the seminar, some experts said that, although over the years, our country has issued many mechanisms and policies to develop the supporting industry as well as the foundry - metallurgical industry, but in reality, the policies has not yet "affected" business.

 "There are many indicators of the supporting industry that have not met the target, for example, the auto industry, the localization rate was targeted 60% in the period 2010-2020, but currently only reaches 7-8%. Similar to the mechanical industry by 2020, the localization rate is 75%, but the domestic mechanical engineering technology is still simple manufacturing technology in general.", Mr. Cuong said.

 Therefore, in order to develop the casting and metallurgy industry, Vietnam needs to come up with a long-term and sustainable overall strategy. "We should focus on areas where Vietnam still has room for development," Mr. Cuong emphasized.

Besides, according to Mr. Manh, the Government and ministries should have preferential mechanisms and policies to encourage investment, stronger incentives in terms of capital, premises, and policies on training high quality human resources, to support the development of the Foundry -  metallurgy industry./.