Socialist Republic of Vietnam

HCM CITY — HCM City industries are beginning to modernise, yet still more needs to be done according to experts, if companies want to compete in the global market place.

Professor Dr Nguyen Mong Hung, Chairman of the HCM City’s Union of Science and Technology, said hundreds of enterprises in the city are beginning to automate their businesses using sophisticated computer systems.

In the field of garments and textiles, Characteristics of Computer Aided Design and Manufacturing (CDA/CAM) and Computer Numeral Control (CNC) systems are the two most common systems.

In the mechanical and engineering sectors, CDA/CAM and CNC systems are also widely used. These systems are made by world renown manufacturers like Siemens, Hitachi, Matsushita and Telmecanique.

Many universities, including the HCM University of Technology, the Thu Duc Teachers’ Technical Training University and the Sai Gon Technology University are researching methods of automation.

More to be done

As Viet Nam opens its economic doors, industries must continue to update their technologies if they want to remain competitive, according to the Ministry of Industry (MoI) and Ministry of Trade.

An official at the MoI, Nguyen Minh Son, said the nation’s mechanical engineering industry is still lagging about 40 years behind regional competitors and 50 years behind developed countries.

Son said the garment and textiles industry–the country’s mainstay industry – still needs to renovate 45 per cent of its equipment and between 30-40 per cent must be replaced.

Viet Nam is the world’s second largest cashew nut exporter, yet workers still have to peel nuts by hand when processing the product, resulting in high production costs and reducing the industry’s competitive edge, according to Ho Ngoc Cam president of the Viet Nam Cashew Association.

The MoI reported that development of technology has contributed between 30-40 per cent to GDP growth. When Viet Nam used to export unprocessed products and materials only, the country made a meagre US$2-3 billion annually.

Chief representative of the Ministry of Trade, Phan The Hao, said entry to the World Trade Organisation will bring more opportunities for local producers to get access to modern technology. However, during the transition process, enterprises should also try their best to renovate their equipment to ensure competitiveness.

However, during the transition process, enterprises should also try their best to renovate their equipment to ensure competitiveness.

Viet Nam News, May 21, 2005