What is Supporting Industries? Classification and roles

The supporting Industries is the only concept in which all industrial products have a role to support the production of the main finished products.

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Supporting industry 

Concept

Supporting industry is the only concept for all industrial products that have a role to support the production of its main products.

Namely components, accessories, spare parts, packaging products, materials for painting, dyeing, etc. And can also include intermediate products, preliminary materials. 

If you tell similar products, the range will be very broad, but adding a more characteristic will see a clearer range:  supporting industry products are typically produced in small scale, made by small and medium-sized businesses. 

Therefore, in the automotive industry for example, parts such as car heads, car bodies, wheels… It is often not known as an supporting industry because it is mainly produced by large companies with large scale. 

In this industry, supporting industry are components, lower-level supporting materials are supplied to produce the vehicle’s head, vehicle body…

Classification

It is possible to divide the supporting industry into 3 large groups as follows:

-Supporting industry provides machinery and equipment for many industries, including assembly industry, processing and other supporting industries.

-Supporting industry for processing industry to supply raw materials for processing industry such as textile, footwear and… These supporting industries do not require high-skilled personnel, produce less material and do not have a big impact on the product.

-Supporting industry for assembly industry supplying components and spare parts for assembly industry such as automotive, motorcycle, electronics… 

These support industries require higher-skilled labor, mainly metal components, rubber plastics, requirements met with common standards and have a large image to product quality (Kenichi Ohno, 2007).

Role

In addition to the efficient creation of many jobs, attracting excess labour, the supporting industry plays a very important role in increasing the competitiveness of the main industrial product and accelerating the process of industrialization in the medium-expanding (broadening) medium-deep (this) direction.

(Reference: Le dang Minh, Scientific Forum, University of Culture)

According to https://vietnambiz.vn/

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