Capital eyes Vietnam mould industry

Mould manufacturing needs to overcome several hurdles in order to become one of Hanoi’s key industries, according to the Department of Industry and Trade.
The department’s survey of production methods found that foreign moulds were still preferred by enterprises due to their superior quality and lower cost. Businesses reported that domestic moulds were neither sufficiently durable nor sophisticated.

Vietnamese companies produced moulds mainly to serve in their own manufacturing process but rarely sold them on the market.

According to deputy director of the Department of Industry Management Luu Minh Duc, the industry currently lacks high-level skills, techniques and human resources, and investment in equipment for mould production is costly.

Duc said that human resources played an especially decisive role in the development of mould production, which depended mainly on experience, knowledge and creativity.

A lack of cooperation between mould producers is another cause of concern, according to Bui Ngoc Huyen, director of Xuan Kien Automobile Company.

Activities, such as fairs and exhibitions, were needed to advertise domestic moulds and promote cooperation, which would help raise capacity and sophistication, he added.

He also urged that financial incentives be put in place, including a tax on imported steel, the material used for moulds.

“Promoting the sector’s development is crucial,” Duc emphasized. He reasoned that moulds could be highly valuable when used to produce high-quality goods. There are 30 enterprises producing moulds in Hanoi, about half of which receive foreign investment, mainly from Japan, China and Taiwan.

Meanwhile, the demand for moulds has been increasing as thousands of Hanoi enterprises use moulds in production.

According to the Ministry of Industry and Trade, the sector employs about 1,500 people and has a turnover of 500 billion dong (US$23.8 million) per year.

Ngo Van Tru, deputy director of the ministry’s Department of Heavy Industry, said moulds were included in the list of industrial products to receive incentives from the government.

Under the master socio – economic plan for Hanoi to 2020 with vision to 2030, ratified by the prime minister in July, mould production would become an important industry of the capital.

Tags: Vietnam mould industry