Removing difficulties, increasing support for supporting industries to seize opportunities in the new context

Supporting industry enterprises have developed in both quantity and quality, improved competitiveness and increasingly participated in domestic and global value chains. At the same time, the production capacity of domestic supporting industry products has been raised, and the localization rate of a number of industries in Vietnam has been improved.

Supporting industry changes positively

At the Seminar with the theme "Removing difficulties, increasing support for supporting industries" organized by Industry and Trade Magazine on September 22, 2023, Deputy Director of the Department of Industry, Ministry of Industry and Trade Pham Tuan Anh said that in recent times, the State's incentive policies and the efforts of enterprises have brought positive results in the development of supporting industries.

The State's incentive policies and the efforts of enterprises have brought about positive results in the development of supporting industries.

Up to now, the whole country has about 5,000 supporting industry enterprises; products are supplied sufficiently domestically and exported to Korea, Japan, China, the United States, etc.

In particular, the number of enterprises that are tier 1 suppliers for multinational corporations is about 100; tier 2 and tier 3 suppliers is about 700 enterprises. Typically, there are about 50 enterprises that are tier 1 suppliers and 170 enterprises that are tier 2 suppliers for Samsung Group. In the field of mechanics - automobiles, there are about 12 enterprises participating in tier 1 supply for Toyota.

In addition, the localization rate of our supporting industrial products has also improved significantly in recent times. Specifically, in the textile and footwear sectors, the localization rate is about 45 - 50%; the mechanical engineering sector reaches 15 - 20%; the automobile manufacturing and assembly sector reaches 5 - 20%, especially for some vehicle products such as trucks and passenger cars, this localization rate is higher.

Currently, Vietnamese supporting industry enterprises have been aware of improving and enhancing their capacity through training for management teams as well as applying scientific and technical advances into the production process to improve the production process - Mr. Pham Tuan Anh said.

Increase support for supporting industry enterprises to take advantage of opportunities

However, our country's supporting industry is still quite young in general, the scale and capacity of supporting industry enterprises are still limited, and products are still in the low value-added segment in the supply chain. Especially, in the context of global difficulties, countries have many changes in supply chain construction policies, many opportunities and challenges are posed for Vietnamese supporting industry enterprises.

According to Mr. Pham Tuan Anh, the world economic fluctuations have caused some countries to step up efforts to attract their corporations to return home to invest, but there are also corporations looking to countries with stable political situations and favorable policies like Vietnam for long-term production. Most recently, during the official visits of the leaders of Vietnam and the United States, there have been suggestions that US investors will invest more heavily in Vietnam.

Supporting industry enterprises develop in both quantity and quality.

Hanoi is aiming to establish 1,000 enterprises in the field of supporting industry production by 2025, while developing in depth. To achieve this goal, according to Mr. Nguyen Van, the solutions that Hanoi is focusing on implementing include increasing support for enterprises to borrow capital; stepping up trade promotion activities, taking advantage of FTAs; strengthening human resource training, connecting with large enterprises to improve technological level...

The Ministry of Industry and Trade will amend and improve legal policies, especially the Law on Key Industries, to best support supporting industry enterprises. At the same time, the Ministry will coordinate with large corporations such as Samsung and Toyota to support Vietnamese supporting industry enterprises to improve their capacity through training and market expansion.

“In the public investment program for the period 2021-2024, the Ministry of Industry and Trade is assigned capital to build two industrial development support centers in Hanoi and Ho Chi Minh City. We expect that when the facilities and functional apparatus are completed, the two centers will provide more support to businesses in the coming time,” Mr. Pham Tuan Anh shared.