Electrical equipment sector tops 18% growth

The electrical equipment industry is estimated to need an investment of around VND136 trillion (US$7.2 billion) to achieve annual growth of 17-18 per cent for the next five years.

This is one of the main goals of a plan to develop the industry in that period recently approved by the Ministry of Industry and Trade.

According to the ministry, this growth rate will enable the industry to meet 70 per cent of the domestic demand for electrical equipment like wires and transformers and 55 per cent of the demand for electric motors and dynamos.

Increasing exports by 18 per cent a year is another important target under the scheme.

For all this and to ensure the industry’s productivity and technologies will be on a par with regional standards, VND136 trillion will be required, according to Hoang Thai An, chairman of the Viet Nam Electrotechnical Industry Association (Velina).

He said that in recent years the industry has achieved some success, with an increasing number of companies capable of manufacturing electric motors, low – and medium-voltage instruments, and insulation porcelain.

Vietnamese electrical equipment are also becoming popular abroad, with transformers being exported to the Middle East, Japan, and Africa, insulation porcelain to the US and the Middle East, and compact fluorescent lamps and wires to Latin America, the Middle East, Myanmar, and the Philippines.

Companies that have taken the lead include Dong Anh Electrical Equipment Manufacturing Joint Stock Company (EEMC) and Thu Duc Electrical Engineering Company, both of which specialise in manufacturing 110 KV and 220 KV transformers.

Recently EEMC, with assistance from the Viet Nam Electricity Group, successfully manufactured 500KV transformers, the first of their kind in Southeast Asia, and other key instruments like 110-220KV high-voltage circuit barkers and 35KV circuit switchers, An said.

Others like Cadivi, Vaxuco, and Cadisun supply high-quality electrical wires and cables to both overseas and domestic customers.

The Velina chairman said members are now focusing on manufacturing power-saving devices and equipment used with solar and wind energy.

He called on the Government to assist electrical equipment manufacturers in making these items by reducing import tariffs on manufacturing equipment and materials and erecting technical barriers to prevent import of low-quality products. — VNS

Tags: Vietnam Electrical equipment sector, Vietnam electronics