VEAM needs innovation to create development momentum

On the morning of March 6, in Hanoi, Deputy Minister of Industry and Trade Truong Thanh Hoai worked with VEAM on innovation and orientation for developing new products.

Also attending the meeting were Mr. Tran Viet Hoa - Director of the Department of Industry, Mr. Dao Duy Anh - Deputy Director of the Department of Innovation, Green Transformation and Industrial Promotion, along with officers and experts from functional units of the Ministry of Industry and Trade...

Vietnam's leading mechanical enterprise

Reporting to the Deputy Minister and the working delegation, Mr. Tran Quan Anh - Head of Economic - Planning Department, Vietnam Engine and Agricultural Machinery Corporation - JSC (VEAM) - said: In 2024, despite many difficulties in production and business, especially in product consumption, the corporation's after-tax profit exceeded the plan approved by the 2024 Annual General Meeting of Shareholders.

Overview of the working session

Currently, the Corporation is operating on three main pillars: supporting industry, engines and agricultural machinery, and automobiles and motorbikes. In particular, many mechanical products of VEAM have established brands in the market, participating in the global supply chain such as: Engines, tractors, bearings, gearboxes, air blowers, engine spare parts, motorbike spare parts, automobile spare parts, cars, etc.

Besides dominating the domestic market, VEAM's products are exported to over 20 countries around the world with a total annual export turnover of tens of millions of USD.

Regarding supporting industrial production, in recent years VEAM has had steady growth. VEAM has participated in providing products with high added value to major domestic and foreign partners.

This is the result of a continuous process of promoting improvement, technical research, and technological innovation to have the most reasonable and effective manufacturing technology processes to be competitive in the market.

Ms. Nguyen Thi Hoa - Member of the Board of Directors - spoke at the meeting

For example, the Corporation's mechanical processing line with an output of 40 million products/year; steel stamping line with an output of 6,500 tons/year; cast iron casting line with an output of 7,200 tons/year; semi-finishing crankshaft processing line for Honda Vietnam, automatic green sand casting line with Japanese technology...

Strengthening resources for products serving the railway industry

" Currently, VEAM is researching mechanical products for the railway industry such as: Power supply system with 3rd rail replacement or overhead power supply system using DC for urban railways; researching AC power supply system for national railways, high-speed railways; rail accessories; detail clusters... " - Mr. Tran Quan Anh said.

Deputy Minister Truong Thanh Hoai gave a speech at the meeting.

The mechanical engineering industry can participate in national railway projects, urban railways, high-speed railways; wind power projects; nuclear power projects... in the fields of power supply systems, transformer stations, elevators, steel structures...

" With its existing capacity and experience, VEAM is completely confident that it can participate in the supply chain of spare parts and mechanical structures for railway projects, wind power projects, and maintenance of locomotives and carriages ..." - Mr. Quan affirmed.

To participate in railway projects, the Corporation proposed to the working group of the Ministry of Industry and Trade to participate in the production of products such as: Bolts, rail clamps; electric motors, brake system reducers, train car parts, generators used in infrastructure and train car construction, steel structures in railway infrastructure and power supply systems, maintenance equipment, locomotive and train car maintenance stations....

At the same time, VEAM also proposed to join the list of units with the capacity to produce railway mechanical parts; have a mechanism to support funding for product research and development or receive technology transfer for manufacturing railway mechanical products for the project. In addition, the enterprise wishes to be supported with preferential loans to invest in equipment and technology to produce railway mechanical products for the project; the enterprise is supported with funding to train human resources in railway mechanical product manufacturing technology for the project; have a payment guarantee mechanism for enterprises participating in the project.

Mr. Ngo Khai Hoan - Chairman of VEAM Board of Directors - made a speech at the meeting

Reporting to the Deputy Minister at the meeting, Mr. Ngo Khai Hoan - Chairman of the Board of Directors of VEAM - said: The Corporation has developed a plan to implement Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation. At the same time, the unit has established a fund for science and technology development, aiming to develop energy-saving engine products, green energy, and innovation at the Corporation and its member units.

Currently, VEAM is building 5 development and innovation programs, key products related to railway mechanics, green energy, mechanical engineering, auto components and supporting industrial products.

Mr. Pham Anh Tuan - Deputy General Director of VEAM - shared that as a state-owned enterprise participating in programs and projects of the Government, the enterprise identified this as one of the priority orientations in the coming time. Therefore, in the past time, VEAM has proactively implemented a number of activities under the direction of the Ministry of Industry and Trade to work with a number of universities, a number of units of the railway industry... From there, there is a product plan oriented to participate in the railway industry.

At the meeting, the leaders of the Ministry of Industry and Trade and the working delegation also listened to the opinions of the leaders who are members of the Board of Directors, Deputy General Directors, and heads of VEAM's professional departments on the operations of the Corporation and its member units; plans and difficulties due to both subjective and objective factors that the enterprise is facing... From there, it was recommended that the Ministry and the Government have timely solutions and solutions, creating favorable conditions for domestic enterprises to perform well the tasks assigned by the State.

Accompanying businesses to develop new products and conduct scientific research

At the meeting, Mr. Dao Duy Anh - Deputy Director of the Department of Innovation, Green Transformation and Industrial Promotion - asked VEAM not to lose the domestic agricultural machinery market while Vietnam is a country with strong agricultural development, and other countries are having policies to protect businesses and protect the domestic market.

Mr. Dao Duy Anh - Deputy Director of the Department of Innovation, Green Transformation and Industrial Promotion

Mr. Duy Anh believes that we need to learn from China's experience in developing the railway industry and supporting industries. Research and orientation should be in the direction of technology transfer.

Mr. Dao Duy Anh also suggested that VEAM needs to have breakthroughs based on human capacity, finance, and support from superior leaders to develop in new fields such as high-speed railways and must start investing in small things to gradually move forward.

" The Department of Innovation, Green Transformation and Industrial Promotion will accompany VEAM in building science and technology programs, technological innovation, and product innovation to serve the development of the industry and the country, " Mr. Dao Duy Anh emphasized.

Representative of the Department of Industry, Mr. Tran Viet Hoa highly appreciated VEAM's efforts to proactively develop a plan to implement Resolution 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation.

The Department of Industry affirmed that it will accompany and coordinate with VEAM in building strategies to have orientations for implementing immediate and long-term tasks; promoting the potential strengths of the enterprise. Mr. Hoa also suggested that VEAM develop in the direction of high technology, digital transformation, and make the most of the Central Government's breakthrough policies in economic development.

For some new fields proposed by VEAM such as railway mechanics, energy mechanics, the leaders of the Department of Industry agreed and suggested that businesses need to analyze carefully to have specific directions for development; choose to participate in what content in the railway industry supply chain...?

Mr. Tran Viet Hoa - Director of Industry Department

" The Department will coordinate and provide maximum support to the corporation in providing information and promotional activities in learning new technologies, creating conditions for businesses to participate in the Ministry's science and technology programs, " Mr. Hoa affirmed.

VEAM needs to change its thinking and approach to develop strongly.

Speaking at the meeting, Deputy Minister Truong Thanh Hoai emphasized: VEAM is one of the enterprises expected and oriented to develop and play a fundamental role in the Vietnamese mechanical industry.

" However, with a revenue of about 5,000 billion VND in recent years, it has not developed commensurate with its available potential. Therefore, VEAM needs to be more proactive, participate in domestic and foreign supply chains, diversify products... It is recommended that VEAM's Board of Directors and the collective of workers change their thinking and way of working " - Deputy Minister Truong Thanh Hoai emphasized.

Deputy Minister Truong Thanh Hoai delivered concluding remarks at the meeting.

The Deputy Minister suggested that VEAM's Board of Directors should be more decisive in handling and resolving existing problems of enterprises, while ensuring publicity and transparency so that all employees can look at it and act accordingly.

The Deputy Minister affirmed that the Ministry of Industry and Trade will always stand side by side with businesses to remove difficulties and obstacles in resolving existing problems of businesses. " We must remove the old tumor, to have new motivation for development, cadres can confidently contribute, promote the intellectual potential of individuals, and the solidarity strength of the business community in production and business activities " - the Deputy Minister emphasized.

The Deputy Minister said that, regarding the orientation of participating in the production supply chain for the railway industry, in addition to the preparation work of the enterprise, VEAM also needs to pay attention to the supply chain for projects on new energy and renewable energy, this is a field that is forecasted to develop strongly in the coming time.

The Deputy Minister also directed the Department of Industry, the Department of Innovation, Green Transformation and Industrial Promotion to coordinate and support VEAM in building medium and long-term strategies, improving the content of science and technology in developing traditional and new products.

Concluding the meeting, Deputy Minister Truong Thanh Hoa emphasized: VEAM needs to absorb the opinions of the leaders of the Departments and promote its role and competitive advantages, overcoming previous limitations. Continue to improve internal regulations and procedures to improve governance in accordance with the law; perfect its development strategy in the coming period.

Previously, at the Conference summarizing production and business activities in 2024 and implementing the plan for 2025, the leaders of the Ministry of Industry and Trade reminded the Board of Directors of VEAM that in 2025 and the following years, with the policy of investing in high-speed railway projects and developing industries towards increasing the proportion of localization in products, implementing Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation along with many policies and Resolutions of the Central Committee... Therefore, VEAM needs to research products to participate in projects, supply chains, implement the above policies and resolutions... Thereby, gradually bringing the Corporation back to the "leading bird" in mechanical industrial production.

Source: https://congthuong.vn/thu-truong-truong-thanh-hoai-veam-can-doi-moi-de-tao-dong-luc-phat-trien-377000.html