Transcript 4 Italian presence in Viet Nam

Mechanical industry
in Viet Nam
Bologna, 11 February 2010
Viet Nam - country profile
A country in the Southeast Asia
 Land area: 331.698 km2
 Population: 86 million
 Labour force: 48 million
 Coastline: 3.260 km
 Main industrial areas: Ha Noi,
Ho Chi Minh City, Da Nang,
Hai Phong, Can Tho
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Viet Nam - economic data
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GDP (2008): US$89 billion
 Per capita: US$800
GDP growth (2009): 5.3%
GDP per sectors:
 Agriculture: 22%
 Industry: 39,9%
 Service: 38,1%
Exports: US$61 billion
Imports: US$77 billion
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Italian presence in Viet Nam
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Main imports from Italy: industrial machines, vehicles, leather
material, electric appliances, chemical
Import volume from Italy (up to 11/2009): US$574 million
34 investment projects, valued US$162 million, of which 5
new projects in 2009, valued US$ 49 million
 Piaggio, Datalogic, Bonfiglioli
 Illy, Paccorini
"Made in Italy" means quality and reliability
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Mechanics in Viet Nam
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From '60 to '80, regarded as the key industry in the economy
 backward technology, lack of cooperation for design,
manufacturing, supply, low level of automation
From '80 to 2000, the role is small because of privatization of
the economy leaving mechanics on the margin
From 2002, the government takes lead in restoring mechanics,
putting it as an important industry
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Facts and figures
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In 2007, the export value of the mechanical industry was
US$2.8 billion
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Tool machines (i)
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The market of tool machines in Viet Nam is still small
Few Computer Numerial Control (CNC) machines
There are over 40.000 tool machines in the country, most of
them are obsolete
The demand is sharply increasing
 less universal machines, more no-swarf machines and
machines for special use
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Tool machines (ii)
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Vietnamese companies are capable to provide 5.000 machines
every year, mostly small universal machines with E2 level or
lower
Viet Nam exports about 2.000 machines to Thailand, Czech,
US with the value of US$2 million a year
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Whole equipment (i)
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Before 2000, most of equipment made in Viet Nam were of
small scale, out-of-date technology
When foreign investment flourishing, new factories have new
equipment, most of them are imported
 Imports value estimated US$4-6 million/year
Local contents of equipment raised from 10% to 30%
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Whole equipment (ii)
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From 2000, Vietnamese enterprises started becoming EPC
contractors
 Dung Quat refinery plant
 Ca Mau gas-power complex
 Hoang Thach cement plant
 Quang Nam beverage plant
 Hydropower stations A Vuong, Buon Kuop, Plei Krong, etc.
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EPC
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Viet Nam can take EPC in the following projects:
 Ship building up to 54.000 tons
 Cement plant up to 1.4 million tons/year
 Paper and pulp plant up to 60.000 tons/year
 Beer plant up to 20 million litres/year
 Rubber processing, tyre plant up to 100.000 tyres/year
 Hyropower station up to 100 MW
 NPK fertilizer plant
 Sugar plant up to 1.500 tons/day
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Projects in future
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Several mega projects that Vietnamese enterprises are
participating:
 Son La hydropower station
 Ca Mau gas-power complex
 Thach Khe mining and furnace complex
 Cement plants with capacity of more than 2 million
tons/year
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Ship building
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Viet Nam can build ships with tonnage up to 53.000 tons,
high-speed boats, container liners, tankers of 13.500 tons
Contractors and sub-contractors for customers from Europe,
Japan, Korea
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Mechanics in transport
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Ratio of local contents is 40%
Capable to produce light truck up to 5 tons
Motorcycle are mostly manufactured domestically, local
contents 85-90%
Export motorcycles, buses, light trucks
Design, manufacture diesel locomotives and wagons
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Mechanics in construction
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Construction is booming as economy grows fast
Big demand for construction machines
 residential buildings, office space, industrial complex
 highways, tunnels, bridges, plants, ports
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Mechanics in agriculture
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Viet Nam can produce irrigation pump of 36.000 m3/hour
Equipment for food processing
Equipment for field operations: cultivation, harvesting
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Pros and cons
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Pros (advantages)
 Economy in full integration to the
world, easy to learn from other
countries and grasp new technologies
 New markets arising: cars, motorcycles,
ships, agricultural machines and tools,
accessories
 Market-driven companies are forced to
be more competitive
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Pros and cons
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Cons (challenges)
 Lack of long-term investment
 Lack of source technology
 Poor human resources, espcially for R&D
 Low experience in large projects
 Fierce competition with products from more advanced
economies
 Program of localization is abandoned
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What to do with Italy?
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Cooperation in training
Exchange of labour, experience
Invite Italian manufacturers to visit Viet Nam and make
investment
Italian constructors to bid for Vietnamese projects
Italian manufacturers can outsource their some stages of
processing to Viet Nam
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Useful websites
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www.vami.com.vn: Viet Nam Association of Mechanical
Industry
www.mie.com.vn: Machine and Industrial Equipment Corp.
www.vietmachine.com: Viet Nam Machine Tool
www.imi-holding.com: Industrial Machinery And Instruments
Holding
www.vinaincon.com: Viet Nam Industrial Construction Corp.
www.lilama.com.vn: LILAMA
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Further contact
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Commercial Office, Embasy of Viet Nam in Italy
Via Po 22, 00198 Roma
Tel: 06 841 3913
Fax: 06 841 4072
Email: [email protected]
Newsletter: www.thanhhai.com/newsletter
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