Although Vietnam's economy has developed rapidly, its level of industrialization remains low. Machinery in Vietnam's engineering, metallurgy, textile, papermaking, and chemical industries all relies on imports, with some sectors importing as much as 90% of their machinery. Chinese machinery has captured most of the Vietnamese market with a huge price advantage. However, the Vietnamese government and enterprises are now seeking to accelerate technological innovation to gradually reduce their dependence on imported Chinese machinery.
Ho Chi Minh City Chairman Le Hoang Quan called on state-owned enterprises to accelerate technological innovation and diversify raw material supplies, gradually reducing their heavy reliance on Chinese technology and materials. He stated that Vietnam is in fact capable of manufacturing such machinery, and therefore Vietnamese universities, scientists, and enterprises should join forces to jointly research, develop, and manufacture machinery, gradually replacing imported products.
Le Van Khoa, head of the Ho Chi Minh City Department of Industry and Trade, said that although machinery and equipment made in China are cheap, they consume a lot of fuel. Many enterprises have therefore switched to buying German and Japanese machines; although these machines offer relatively high performance and efficiency, they cost more to purchase.
Currently, 29 enterprises in Ho Chi Minh City have established a "Science and Technology Foundation" with total funding of 380 billion Vietnamese dong, and will spend 124 billion Vietnamese dong on research and development of modern new technologies.
Industry insiders say that labor productivity in Ho Chi Minh City is currently very low, only one-fourth that of Thailand and one-fifth that of Malaysia. However, with Vietnam's technological innovation, this situation will improve greatly within the next five years.
Mai Thanh Phong, an expert at the Ho Chi Minh City University of Technology, said that Vietnam lacks raw materials and components for machine manufacturing, and that technical experts and enterprises must cooperate sincerely to overcome these problems together. The government should formulate more incentive policies to encourage enterprises to import advanced machinery and equipment to replace outdated machinery, but enterprises should innovate independently and gradually reduce their dependence on imports.
It is understood that Vietnam urgently needs to import large quantities of advanced machinery products, especially earthmoving machinery and equipment, to meet the needs of domestic engineering construction.
Compared with similar products from Europe, the United States, and Japan, Chinese construction machinery has a great advantage in cost-effectiveness. Typically, the price of purchasing one piece of machinery and equipment produced in Europe, the United States, or Japan is close to the price of an entire production line of similar Chinese equipment. The brand "Chinese Machinery" is now widely accepted in Vietnam's construction machinery
market and enjoys extremely high recognition in related local industries.
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