Technology investment drives export expansion

Etech Vina Precision Mechanical Co., Ltd., based in Dong Phu commune, was established in 2012. After nearly five years studying markets and production partners, the company stabilized operations by 2018 with a workshop of more than 100 square meters, three CNC cutting machines and several automatic lathes.

Precision mechanical products inspected using a 3D coordinate measuring machine at Song Hong Technology Development and Investment JSC (Nenh ward).

Thanks to its rapid technical adaptation and focus on product quality, Etech Vina began receiving orders from foreign partners.

According to Director Nhu Van Hong, between 2020 and 2022 the company invested around 30 billion VND (1.1 million USD) to build two production facilities, purchase 30 CNC cutting machines and 30 automatic lathes, along with other modern equipment.

Its production lines now operate շուրջ the clock, manufacturing mechanical components for automobiles, motorcycles, aircraft, household appliances and electronics for export to Malaysia, Singapore and the United States, with annual output reaching 4–5 million units.

With its current capabilities, the company can produce high-precision mechanical parts that meet international standards and participate in global supply chains.

Other firms in the province are following a similar trajectory, focusing on precision engineering, mold manufacturing and CNC components for major corporations.

These include LG Mold Mechanical JSC, KIMSEN Industry JSC and Yontech Vina Co., Ltd., signaling that Bac Ninh’s mechanical sector is integrating more deeply into the value chain of the processing and manufacturing industry.

Policy support raises expectations

A notable trend is that local firms are proactively partnering with foreign companies to improve design and manufacturing capabilities and directly access foreign-invested enterprises (FDI).

In December 2025, Alpha Construction and Investment JSC of Vietnam and Japan’s Taiho Group established Alpha Taiho Vietnam Co., Ltd. to supply machinery, electronic components and automated production lines to Japanese multinational corporations, including Canon.

Kubota, Deputy Director of Alpha Taiho Vietnam, said Vietnam holds advantages in workforce, land availability and a dynamic market.

Combined with the company’s design capacity, advanced technical expertise and ability to meet market demand, it aims to develop automation products for FDI enterprises in Vietnam while expanding exports by leveraging competitive production costs.

Despite growing opportunities, Nguyen Van Hung, Chairman of the provincial Mechanical Enterprises Association, said most firms still face challenges in joining global supply chains.

These include uneven production technology, limited management capacity, lack of investment capital, shortages of skilled labor and low localization rates.

In recent years, both central and provincial authorities have supported businesses with tens of billions of VND from industrial promotion funds to upgrade machinery, innovate technology and improve management capacity. However, these resources remain insufficient compared to rising demand as the number of enterprises seeking support grows.

The provincial Department of Finance is currently working with relevant agencies to advise the People’s Committee on a policy to reduce land rental costs for high-tech enterprises in the private sector, as well as small and medium-sized enterprises and innovative startups.

The policy, expected to be issued in August 2026, aims to implement government regulations guiding the development of the private sector.

Dong Anh Quan, Deputy Director of the Bac Ninh Investment Promotion and Enterprise Development Center, said the province will prioritize new mechanisms to support businesses in accessing industrial land.

Industrial parks and clusters are expected to allocate 5% of their land, or at least 20 hectares, for lease to SMEs, high-tech firms and startups, while reducing rental costs by about 30%.

Additional support will include management training, access to finance, trade promotion, brand development and assistance for newly established enterprises or those transitioning from household businesses.

With continued efforts from businesses and stronger policy backing, Bac Ninh’s mechanical engineering sector is expected to make significant strides, deepen its integration into global supply chains and contribute to the province’s overall economic growth.

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