These products are often produced in small and medium-sized enterprises, helping to provide components, spare parts, raw materials and intermediate products necessary for large industries. Let's learn about the supporting industry with Intech Group through the following article:

1. Concept of supporting industry

Supporting industry refers to all industrial products that support the production of main finished products. Products in this industry can be components, accessories, spare parts, packaging, paint materials, or intermediate products, raw materials. These products play an important role in completing the supply chain, ensuring the production process runs smoothly and efficiently.

2. Classification of supporting industries

Supporting industries can be divided into three main groups, including:

Supporting industries providing machinery and equipment

This group specializes in providing machinery, tools and equipment for various industries, such as assembly, processing and other supporting industries.

Supporting industries for processing industries

These are industries that provide raw materials for the processing industry, especially in fields such as textiles, footwear, etc.

Supporting industries for assembly industries

This group provides components and spare parts for assembly industries such as automobiles, motorbikes, electronics, etc., requiring highly skilled workers. The main products are metal, plastic and rubber components, with high quality and standard requirements.

3. Characteristics of Vietnam's supporting industry

Vietnam's supporting industry has great potential, especially in the fields of garment, footwear, and automobile and motorbike assembly. However, the supporting industry is still facing many challenges. As a result, Vietnam's industry depends heavily on external resources such as foreign direct investment (FDI), imported spare parts and raw materials.

In terms of demand scale

The development of the supporting industry is still limited because the market size has not met the growth needs of large domestic and international enterprises.

In terms of technology

The gap in quality between domestic suppliers and the requirements of FDI (foreign direct investment) assemblers is still quite large. Some important raw materials for production are still imported because they cannot be produced domestically.

Regarding human resources

The professional qualifications of workers in supporting industries, especially for complex and highly skilled products, are still limited. There is a lack of close links between the production sector and training facilities, leading to a shortage of skilled human resources to meet the requirements of the industry.

Regarding information channels

Assembly enterprises have difficulty finding and accessing information about domestic suppliers, due to the lack of a centralized database on domestic suppliers.

Regarding competitiveness

Currently, about 70% of enterprises enjoying incentives in production and business are foreign-invested enterprises, while the rest belong to domestic enterprises. The reason is that state-owned enterprises, mainly operating according to the full-package production model (from A to Z) and do not have a clear concept of the role of supporting industries in the supply chain.

4. The role of supporting industries in economic development

Supporting industries play an important role in the economic development of each country, especially in improving competitiveness, attracting foreign investment, creating jobs and promoting GDP growth.

Improving the competitiveness of the economy

When components, spare parts and raw materials are produced domestically, businesses can optimize costs, thereby reducing product prices and increasing profits. Helping domestic businesses maintain strong competitiveness, improving the competitiveness of Vietnamese products in the international market.

Attracting foreign investment, participating in the global value chain

International investors often prioritize countries that are capable of providing high-quality components, spare parts and services from local businesses. As the supporting industry develops, Vietnam can participate more deeply in the global value chain, expand export markets and strengthen its competitive position.

Creating jobs, increasing income for workers

The development of the supporting industry entails a large demand for human resources, creating many job opportunities for workers, especially in the fields of production and engineering. By expanding the scale of production, the supporting industry not only increases workers' income but also improves their lives, promoting social development.

Contributing to GDP growth, promoting economic restructuring

Supporting industry directly contributes to the country's GDP growth by increasing the value of industrial production. By developing supporting industry, the economy can improve labor productivity and sustainable growth, contributing to promoting the process of economic restructuring towards industrialization and modernization.

5. Challenges and opportunities of supporting industries

The supporting industry is facing many challenges and opportunities in the development process. Clearly identifying these factors will help businesses have appropriate strategies to take advantage of opportunities and overcome difficulties.

Challenges in developing supporting industries

• Competing with countries with developed supporting industries.
• Demand for high-quality human resources.

Opportunities for supporting industries in the new era

• Advantages from free trade agreements (FTAs).
• Investment trends in supporting industries in emerging markets.

6. Intech Group - High-quality supporting industry brand, affirming its position to reach far

Intech Group is proud to be a supporting industry brand with high value, outstanding in the fields of mechanics, automation, technology and energy. With modern infrastructure and a young, enthusiastic workforce, Intech Group has built a solid foundation over nearly 15 years of development. Currently, the Group has not only affirmed its reputation in the domestic market but also entered a period of strong growth to reach international standards.

With the goal of becoming a leading supplier in Vietnam in the fields of conveyor belts, conveyors, rollers, roller conveyors, and production automation solution systems. At the same time, the company is also expanding the international market with high-quality products and professional services, affirming its solid position in the global market.