Developing supporting industries, when localities actively accompany

On August 29, the seminar "Creating attraction for supporting industry: The role of localities" was held by Industry and Trade Magazine.

Seminar "Creating attraction for supporting industry: Role from locality"

The model of cooperation in developing supporting industries effectively

With many efforts from the Government, the Ministry of Industry and Trade and ministries, branches and localities, in recent times, Vietnamese supporting industry enterprises have increased their participation in the supply chains of multinational corporations, and the supply capacity of enterprises is no longer a concern as in previous years.

In particular, the model of cooperation in developing supporting industries between the Central Government, local authorities and leading enterprises is one of the typical cooperation programs that the Ministry of Industry and Trade has implemented, initially recording many positive results. Some enterprises have successfully applied the innovative model, improved production efficiency, gradually approaching and meeting the strict standards of the global value chain. Participating in the program, localities have also shown a more active role in supporting and accompanying enterprises.

However, in general, up to now, localities have been quite passive in implementing policies for industrial development in general and supporting industries in particular. The development and implementation of policies for developing specific supporting industries, especially the allocation of resources and attracting investment in this field, are still limited. Meanwhile, the majority of Vietnamese industrial enterprises are small and medium-sized enterprises, and their operations are closely linked to the locality.

Looking at the reality, Mr. Pham Tuan Anh - Deputy Director of the Department of Industry, Ministry of Industry and Trade said that recently, some localities with great potential for developing supporting industries such as: Hanoi, Ho Chi Minh City, Thai Nguyen, Bac Ninh, Bac Giang, Hai Phong ..., on the basis of the general policies of the Central Government, have proactively issued policies for their own localities. These policies mainly focus on some contents such as supporting businesses in training human resources, helping businesses access the global production chain.

“ Accordingly, some localities have done very well, such as: Ho Chi Minh City has a policy for priority projects to borrow capital by subsidizing interest rates. Specifically, on July 19, 2024, the People's Committee of Ho Chi Minh City also issued Decision No. 42/2024/QD-UBND on implementing the interest rate support policy for investment projects in priority areas of socio-economic development in the area " - the leader of the Department of Industry acknowledged.

Regarding this content, Mr. Pham Tuan Anh said that the interest rate subsidy policy has also been included in the draft Decree amending Decree No. 111/2015/ND-CP to support businesses. “ The Ministry of Industry and Trade's viewpoint is that the initial step is for localities to implement, and the role of localities is very important. Regarding local investment attraction policies, there should also be constraints on investors. When they enjoy preferential policies, they must also be responsible for Vietnamese businesses. For example, a number of Vietnamese businesses can participate in supplying products to FDI enterprises within a certain period of time. This is a content that localities should pay close attention to ,” Mr. Pham Tuan Anh pointed out.

Local authorities take action, businesses are determined

In recent times, the Ministry of Industry and Trade has always closely coordinated with localities to implement the supporting industry development program approved by the Prime Minister.

In recent times, the Ministry of Industry and Trade has always coordinated closely with localities to implement the supporting industry development program. Photo: Can Dung

Since 2022, the Ministry of Industry and Trade has established a working group consisting of specialized units under the Ministry, of which the Department of Industry is the standing unit, to work with localities. Specifically, we have worked with about 15 localities to exchange content on the policies issued by the Central Government and, based on the characteristics of each locality, continue to develop policies suitable for the localities.

“Without practical, strong and synchronous policies from the central to local levels to promote the development of supporting industries, Vietnam will also be at risk of missing out on large investment flows in the shifting trend of the global value chain as well as innovating the industrial development model,” said a representative of the Department of Industry.

Mr. Duong Minh Hai - Production Director of KIMSEN Industrial Joint Stock Company located in Bac Ninh province said that thanks to the support and connection of the Ministry of Industry and Trade and Samsung Group, KIMSEN was selected as one of five enterprises to participate in the business improvement consulting support program. With such support from state management agencies from the central to local levels, KIMSEN's Board of Directors has a strategic orientation to shift to developing the field of mechanical processing for the supporting industry. "Up to now, KIMSEN's products have been supplied to multinational corporations, FDI companies operating in Vietnam and exported. Up to now, about 50% of our output is for direct export activities and domestic FDI enterprises" - Mr. Duong Minh Hai expressed.

In addition to consulting on site improvement, KIMSEN is also supported by the Industrial Development Center, Department of Industry in training engineers and experts in the field of design, mold manufacturing, programming CNC programs, products requiring high precision. " We highly appreciate the policies and practical activities of state management agencies and partners that the Ministry of Industry and Trade has linked up with, which are activities that help KIMSEN in the period when we are transforming to participate in the supporting industry " - said the leader of KIMSEN Industrial Joint Stock Company.

Or Toyota Vietnam has had a long-term cooperation program with the Ministry of Industry and Trade. This year is the fourth year this program has been implemented with recorded results.

Specifically, some units have reduced inventory by up to 59% and saved nearly 4,000 m2 of factory space. Thus, they can save a lot of money in paying for factory space rental costs or can increase their capacity and output without having to invest more. Some units have eliminated dozens of tons of unnecessary equipment and some units have even increased labor productivity by more than 70%.

Mr. Nguyen Trung Hieu - Head of Business Planning Department of Toyota Vietnam Automobile Company shared that for Toyota, the program helps us once again affirm our determination to increase the localization rate in Vietnam and stabilize production. "In 2024, we also organized a kick-off program at the Toyota Vietnam factory and continued to support 5 more suppliers this year" - Mr. Nguyen Trung Hieu informed.

Based on the positive results achieved in the cooperation program between the Ministry of Industry and Trade and localities, the Ministry of Industry and Trade hopes that enterprises participating in the program will quickly have a plan to promote implementation, further promote the effectiveness of the program, contributing to the development of enterprises in the area in particular and industrial and supporting industry enterprises in the localities in general.

Mr. Pham Tuan Anh informed that in the policies proposed by the Ministry of Industry and Trade in the Decree amending Decree No. 111/2015/ND-CP, we also proposed policies related to market creation, to building industry clusters; as well as policies to support businesses such as credit issues,...

In the coming time, the Ministry will continue to improve mechanisms and policies to create a legal corridor for the industry in general and supporting industries to continue to develop. In addition, it will coordinate with localities in developing local policies to directly support businesses.

To do this, stronger and more synchronous solutions are needed from the central to local levels as well as breakthroughs in thinking and action so that businesses do not miss the "golden opportunity" to join deeper into the value chain. Along with the direction and support from the central level, the role of supporting and working side by side with businesses from the local level is extremely important.

Source: https://congthuong.vn/phat-trien-cong-nghiep-ho-tro-khi-dia-phuong-tich-cuc-dong-hanh-342289.html