Developing supporting industries is important for economic restructuring towards industrialization and modernization.
Supporting industry contributes greatly to total import-export value
According to the Ministry of Industry and Trade, the industry supporting industry Contributing greatly to the total import-export value of the whole country, in the first 11 months of 2024, the preliminary export turnover of goods reached 369.93 billion USD, an increase of 14.4% over the same period last year, a high increase compared to many countries in the ASEAN region and Asia. In particular, some groups of goods increased such as computers, electronic products and components reaching 65.2 billion USD, an increase of 26.3%; phones of all kinds and components reaching 50.2 billion USD, an increase of 3.2%; machinery, equipment, tools, and other spare parts reaching 47.8 billion USD, an increase of 21.6% ...
The report of the Department of Industry (Ministry of Industry and Trade) pointed out that taking advantage of labor, geographical location and political stability, the new wave of investment and investment expansion in high value-added industries (electronics, semiconductors, automobiles, etc.) in the past year has created favorable conditions for the development of domestic supply chains of components and spare parts; spreading and learning science and technology; and cooperation in developing domestic supporting industries.
Notably, new-generation free trade agreements (CPTPP, EVFTA, RCEP,...) have opened up opportunities to access large markets, reduce taxes and promote global supply chains.
Supportive and preferential policies from the Government create favorable conditions for investment, business and production expansion. Potential consumer market with a rapidly growing middle class. Domestic demand for components and spare parts of industries such as automobiles, electronics, mechanics, textiles, and footwear is increasing sharply.
However, the report also pointed out that the scale of enterprises is mainly small and medium, with limited development investment capital and level. The connection between FDI enterprises/multinational corporations and domestic enterprises is still loose. Export of components and spare parts is still mainly from enterprises with foreign direct investment (FDI). Multinational corporations are playing a leading role, especially corporations from Korea, Japan... especially in the field of electronic components manufacturing.
Leader Department of Industry It is recognized that the domestic market capacity has not yet fully exploited its potential, has not yet ensured the scale of economic production capacity for supporting industrial products; there is a lack of leading enterprises of regional and international stature to play a leading role in creating a sustainable development ecosystem.
Continue to realize policies
Clearly defining the role of the supporting industry, the Government and ministries and sectors of Vietnam have issued many mechanisms and policies to develop this field. In particular, Decree 111/2015/ND-CP on the development of supporting industry stipulates support policies (Decree 111) and preferential policies to develop supporting industry. Policies to support the development of supporting industry include: Research and development; application and transfer; human resource development; international cooperation on supporting industry; market development support; supporting industry development center; supporting industry development program.
However, in 2025, the Ministry of Industry and Trade will continue to review, revise, and supplement policies on supporting industry development in a modern and sustainable direction (Decree 111; Supporting Industry Development Program for the period 2026-2035; Sustainable Development Program for the Textile, Garment, Leather and Footwear Industry to 2030, vision 2035...).
At the same time, effectively manage and implement the annual supporting industry development program to help improve the competitiveness of supporting industry enterprises.
Closely coordinate and guide localities in developing, promulgating and implementing mechanisms, policies and programs for developing local supporting industries; strengthen business linkages in the area.
Sharing at the recent Conference summarizing the work in 2024 and deploying tasks in 2025 of the Department of Industry, Mr. Nguyen Ngoc Thanh - Deputy Director of the Department of Industry emphasized that in 2025, it is necessary to accelerate the construction of Technical Centers to support industrial development in the Northern and Southern regions under the Ministry of Industry and Trade to promote research, development, innovation and creativity in the industrial sector in general and supporting industry in particular.
“ Strengthening foreign affairs and cooperation with government agencies of other countries, international organizations, multinational corporations, and large manufacturing enterprises to implement supplier development programs/projects and digital transformation for Vietnamese supporting industry enterprises to participate deeply in the global value chain ” - said the leader of the Department of Industry.
At the same time, coordinate with units in charge of regional markets and trade offices to strengthen promotion, attract investment, connect and boost global production chains, exploit free trade agreements and market opportunities in the new situation, focusing on key markets.
In addition, the Department of Industry is also completing the dossier proposing the development of the Law on Production of Key Industrial Products to submit to the Government for comments. It is expected to be registered to be added to the National Assembly's 2025-2026 Law Development Program.
The development of the Law on Production of Key Industrial Products aims to perfect the synchronous and unified legal framework in line with the socialist-oriented market economy with the guiding role of the State; focusing on policies and solutions to support the promotion of key industries, including supporting industries, in each period, towards sustainable development, ensuring high economic efficiency; making an important contribution to building an independent and self-reliant economy; accelerating the industrialization and modernization of the country.
At the same time, ensure consistency and transparency in state management through strengthening decentralization and delegation of power; inherit and promote current regulations that have been built and implemented stably; and fill policy and legal gaps in the development of key industries.
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