Supporting industries are the backbone of the country’s industry,
according to Truong Thanh Hoai, Deputy Director of the Heavy Industry
Department of the Ministry of Industry and Trade.
Further,
supporting industries play a key role in raising the competitiveness of
industrial products and are a decisive factor in the development and
enhancement of the nation’s competitiveness. Without having supporting
industries, it would be impossible to operate manufacturing industries,
Hoai said during a workshop to discuss solutions to develop support
industries in Vietnam, held by HCM City Economics University and the
Economic Commission of the Party Central Committee in Ho Chi Minh City
on July 31.
Regarding developing solutions for supporting
industries in Vietnam, Professor Vo Thanh Thu said developing the
industries must focus on key industries in Vietnam, including those
attracting large foreign investments, such as garments and textiles,
engineering and electronic assembly. These industries have a large
demand for support industries, as well as provide a need to modernise
technologies and train highly-qualified workers to produce standardised
products.
Thu emphasised that investment in technology required
large amounts of capital. To assist enterprises, the Ministry of Finance
and the State Bank of Vietnam should work out policies to create
favourable conditions for enterprises to have access to long-term loans
with preferential interest rates. A representative of the municipal
Department of Industry and Trade told those at the seminar that support
industries in Vietnam were mainly catering to export processing
technologies, while manufacturing industries largely relied on imported
raw materials and components.
In addition, the country has not yet developed specialised industrial complexes, resulting in underdeveloped support industries.
The
municipal department has proposed a series of measures to develop
support industries by offering incentives to attract FDI businesses. It
is stated that FDI businesses are an important driving force to promote
domestic support industries.
It has also suggested that the
Government consider a master plan for supporting industries and offer
credit loan policies for businesses to develop the industries and human
resources in the field.
Hoai said the Ministry of Industry and
Trade is now developing a decree on the development of supporting
industries, and is expected to submit to the Government in the fourth
quarter of this year.
Hoai added that the decree would focus on
measures to support technology, production management and customer
services to avoid shortcomings in local supporting industry companies.
Furthermore,
the decree would supplement incentives on corporate income taxes and
construction regulations on the building of supporting industry
complexes to attract global multinational corporations to provide parts
and materials to invest in Vietnam.-VNA