VINACHEM

(VEN) - Thoughthey are faced by numerous difficulties, many industrial companies areinvesting in technological innovation in order to increase the value andcompetitiveness of products so that they can substitute for imported productsand be exported to foreign markets.

In earlyFebruary 2011, the Saigon Industry Corporation put a high-tech rubber sparepart production factory and the Do Thanh Plastic Production Factory intooperation, and broke ground for construction of an uPVC plastic board factoryin Cu Chi District, Ho Chi Minh City. The high-tech rubber spare part factorywas built on 60,000sq.m at a total cost of VND230 billion and has a capacity tomake 150 million products annually for export and domestic sale. The Do ThanhPlastic Production Factory was built on 40,000sq.m at a cost of VND80 billionand has a capacity to produce 4,000 tonnes of plastic packages annually forexport and domestic sale. Meanwhile, the uPVC plastic board factory was builtat a total cost of almost VND300 billion worth of the city'sinvestment-stimulus loan and the corporation's reciprocal capital. This projecthas drawn special attention of the government of Ho Chi Minh City because itwill contribute considerably to the city's flood prevention program.

Nguyen VanTho, the general director of the Saigon Industry Corporation, said that theabove investment projects are aimed at modernizing the key industries to createhigh-tech products of high added value, which can substitute for importedproducts. Thanks to technological innovation, in the first quarter of 2011, thecorporation realized 23.55 percent of its yearly revenue target (an increase of2.2 percent compared with the first quarter of 2010), and 22.1 percent of theprofit target (up 1.48 percent).

The LiksinIndustry-Printing-Packaging Corporation has invested in modernizing technologyand equipment in order to improve the quality of products. In 2010, Liksinbought a Speedmaster CD-102-6-LX-UV offset printer from Germany and a Gallus EM510 flex printer from Switzerland. Along with modernizing equipment, Liksin hasbuilt a LEAN management system and applies the KPI index, so the corporationhas created a professional and effective work environment.

In 2011,Liksin will expand its operations with a factory based in the Tan DucIndustrial Park of Long An Province. The corporation's projections for 2011 areto increase its revenue by 13 percent, profit by 22 percent and investmentcapital by 44 percent compared with 2010. Nguyen Ngoc Sang, the chairman of theboard at Liksin, said that thanks to equipment modernization and effectivemanagement, the corporation is becoming a leading provider of printed productsand packages in Vietnam and at the same time building its reputation in exportmarkets.

The SouthernDry Cell and Storage Battery Joint Stock Company (Pinaco), a large dry cell andstorage battery manufacturer in Ho Chi Minh City, recently put its fourthfactory into operation. That is the largest factory of the company, covering60,000sq.m and having the designed capacity to manufacture two million kWh ofbattery each year, using advanced technology and modern equipment imported fromthe US and the EU. This factory will launch high-grade battery products such asCMF (complete maintenance free) car batteries, VRLA (valve-regulated lead-acidbattery) batteries for motorized vehicles, lighting and telecommunicationsystems. Pinaco believes that advanced technology and modern equipment willhelp it grow faster in the time to come. The company plans to join the club ofcompanies with annual revenue of VND2 trillion in 2011.

The A DongPaint Joint Stock Company applies an ISO 9001:2008 quality management systemand pays much attention to promoting international cooperation in order toapproach advanced technologies of developed countries such as Japan, the US andthe Republic of Korea, which will help the company improve the productionprocess. A Dong is building a new factory in the Hai Son Industrial Park ofLong An Province. This factory is 30,000sq.m wide and has modern equipment.Nguyen Thi Nhung, the director of the company, said that investment intechnological innovation helps A Dong in particular and the domestic paintsector in general further develop in the era of international integration.

The Vinh LapHung Plastic Company Limited invested in modernization and automation of theproduction process to create high quality and environmentally friendlyproducts. Company products, including household-used plastic utensils andindustrial-used plastic products, are selling well in wholesale markets in HoChi Minh City and supermarkets such as Maximark, Citimart, BigC, Mien Dong(Eastern) Supermarket, and the Cuu Long (Mekong) Delta. Luu Thanh, the chairmanof the board at the Vinh Lap Hung Plastic Company Limited, said that thecompany exports its products to France, Australia, Canada, Laos, Cambodia, andthe EU with annual export revenue of about US$1.5 million.

Casumina, astrong brand in the field of tire and tube production, has an investmentproject to build a factory to produce one million full-steel radian tires fortrucks each year. This project has a decisive meaning for the company's futuredevelopment strategy.

At a recentmeeting with companies in the fields of mechanical engineering, electricity andelectronics, the chairman of the Ho Chi Minh City People's Committee, Le HoangQuan, said that the city's leaders are requesting concerned departments andsectors to help companies in those fields overcome difficulties. In addition,city leaders are encouraging credit institutions to provide those companieswith loans at low interest rates so that they can invest in technologicalinnovation. /.