Removing policy "bottlenecks" and increasing connectivity for the development of the supporting industry

DNHN - The supporting industry plays a crucial role in promoting development and enhancing competitiveness. To develop this sector robustly, it is necessary to remove policy "bottlenecks" and increase connectivity within the industry.

The development of the supporting industry is considered one of the top priorities by the Party and the State, especially in guiding the future industrial development. Despite receiving significant policy support and achieving some positive results, the sector still faces many limitations…

A major challenge for Vietnam's supporting industry is the lack of clear direction from industrial policies. There is a need for supportive policies and a legal framework easy to implement and helps improve the competitiveness of supporting enterprises. Additionally, tax and management barriers need to be reduced to create more favorable conditions for businesses in the industry.

To improve the quality and accuracy of supporting products and services, it is essential to strengthen cooperation between businesses and research institutes. Sharing knowledge, technology, and experience between the two sides will enhance the ability to research, develop, and apply advancements in the supporting industry.

The supporting industry requires a workforce with high technical expertise and broad knowledge. Therefore, investment in training and developing human resources should be increased to meet the industry's growing demands. Training programs should focus on technological and managerial skills and encourage collaboration between education and businesses to provide high-quality human resources for the supporting industry.

To attract investment and development in the supporting industry, a favorable and competitive business environment should be created. This includes improving infrastructure, reducing administrative procedures, enhancing financial security, and ensuring intellectual property rights. A favorable business environment will attract businesses to invest and expand their operations, enabling them to develop and compete more effectively.

Expanding the domestic market and increasing exports are crucial for the development of the supporting industry. Opportunities for accessing and exporting to new markets should be created, along with promoting and marketing supporting products and services. Enhancing exports will help increase sales and ensure sustainable development for businesses in the industry.

Regarding this issue, Minister of Industry and Trade Nguyen Hong Dien highlighted that in the processing and manufacturing sector, including supporting industries and mechanical industries, significant progress has been made in promoting industrial production growth. The localization rate has improved in many sectors such as textiles, garments, and footwear (reaching 50%) and mechanics (reaching over 30%). The Minister stated, "The supporting industry is gradually improving production organization, with many enterprises becoming suppliers for multinational corporations, participating in the global supply chain. The development of the supporting industry has attracted large corporations from around the world to expand factories and establish Research and Development Centers in Vietnam."

According to the Minister, regarding mechanical engineering for agricultural production, over 90% of agricultural machinery, especially rice milling and polishing machines, and dryers, are produced and supplied by domestic enterprises and have been exported to many markets in the ASEAN region, the Americas and Africa. Additionally, there are many equipment lines used in the processing of agricultural products. Some products are supplied to mechanical plants, particularly in the automobile manufacturing sector, such as VinFast and THACO…

However, Minister Nguyen Hong Dien also pointed out the limitations in implementing preferential policies for the supporting industry. "Investment resources from the State, from central to local levels, are both limited and difficult to access, and sometimes even overlap. Some conditions to enjoy incentives are quite stringent and not truly appropriate, making it difficult for enterprises to access and implement policies," the Minister noted.

Moreover, one limitation in Vietnam's FDI attraction policy is the lack of strong binding and encouragement for FDI enterprises to disseminate benefits to domestic enterprises.

"In reality, investing in supporting industries and mechanical industries requires substantial capital, technological knowledge, and experience, especially when we have to compete with other countries, particularly developed countries, which have made significant advancements," emphasized Minister Nguyen Hong Dien.

He also stated that the dissemination and communication of preferential policies to the business community remain limited. The coordination between central and local levels in implementing policies is not yet effective.

Nghe Nhan