Businesses in support industries growing in quantity, quality

Vietnamese businesses operating in support industries have been developing in both quantity and quality in recent years, with improved production capacity and increasing engagement in global production chains.

In a recent report submitted to the National Assembly Standing Committee and legislators, the Government cited statistics showing that companies in support industries account for nearly 4.5% of all manufacturing and processing businesses and have created more than 600,000 jobs, equivalent to 8% of the workforce in the manufacturing and processing sector. Their net revenue now tops VND900 trillion (US$38.9 billion), or about 11% of the sector’s total.

Some Vietnamese enterprises boast relatively good capacity in producing moulds, bicycle and motorbike components, electrical cables, plastic and rubber components, and tyres, meeting domestic demand and the requirements of foreign importers.

The report noted that support industries play a decisive role in restructuring the economy, improving workplace productivity and skills, and promoting the competitiveness and quality of Vietnamese goods and the economy.

Given this, the Ministry of Industry and Trade has provided advice to the Government and the Prime Minister and issued drastic directions to boost the role and stature of support industries, in line with Politburo Resolution No 23-NQ/TW, dated March 22, 2018, on orientations for building the national industrial development policy to 2030 and vision to 2045.

The ministry is also working to set up three technical centres for supporting industrial development in the northern, central, and southern key economic regions.

These centres will help industrial producers and enterprises in support industries carry out innovation, transfer technology, improve productivity and quality, increase added value in their products, and take part in global supply chains, according to the report.

However, the Government also pointed out that among the 1,800 or so manufacturers of spare parts and components nationwide, only 300 have joined the production networks of multinational corporations.

Production management capacity and technology at most Vietnamese firms in support industries also remains limited, it said, adding that domestic firms have met just 10% of domestic demand for products made by support industries.

There is still a “very large” gap between the needs of multinational corporations and the capacity of domestic businesses, the Government acknowledged.

It said that in order to develop local support industries, it is necessary to overhaul existing mechanisms and introduce more modern versions that better reflect Vietnam’s global integration commitments and create the conditions necessary for enterprises in support industries to grow.

New investment management and attraction policies should also be introduced to ensure that foreign-invested enterprises are connected with and transfer technology to domestic companies, the report suggested.

In addition, there is a need for the continuation of efforts to develop “downstream” industries that turn out or assemble products, for sectors such as energy, precision mechanics, and mechanical engineering.

To do so, the Government must adopt appropriate policies to protect the domestic market and create a healthy business environment to facilitate the manufacturing of industrial products, according to the report.

It added that support policies should focus on certain enterprises in key “downstream” industries, such as automobiles, electrical and electronic appliances, textiles and garments, and footwear, to help them become comparable to the regional competitors so they can fuel the growth of businesses in local support industries.

Flexible and appropriate tariff policies on imported components and spare parts also need to be adopted, to help enterprises cut down on production costs and improve product competitiveness.

“Downstream” industries are important to the development of support industries and in attracting multinational corporations to large-scale projects in Vietnam, the Government noted.

Source: VOV
vov.vn

Related News

Flexible and timely supply of capital to businesses at the right time

Flexible and timely supply of capital to businesses at the right time

VCN - The State Bank (SBV) believes that credit growth for the rice and fisheries industries will continue to grow rapidly from now until the end of the year due to seasonal factors and improved export demand.
Removing barriers and difficulties for businesses is a top political task

Removing barriers and difficulties for businesses is a top political task

VCN – The leaders of the Ministry of Finance requests heads of units under the Ministry to fully and effectively implement resolutions, guidelines and policies of the Party and State on encouraging business development; protecting the legal property ownership rights and freedom in business of people and businesses according to the Constitution and law.
Dutch businesses commit to support Vietnam’s net zero target

Dutch businesses commit to support Vietnam’s net zero target

Dutch businesses are committed to supporting Vietnam in achieving its net zero emissions target by 2050, confirmed the Dutch Business Association in Vietnam.
Expectations on the driving force of public investment

Expectations on the driving force of public investment

VCN - Statistics on registration and dissolution show that businesses are still facing very difficult times. Therefore, public investment is still expected to be the driving force leading economic recovery.

Latest News

2 export commodity groups increased "billion dollars" in 8 months

2 export commodity groups increased "billion dollars" in 8 months

VCN - Exports tend to improve and there are product groups achieving positive growth amid many challenges in the first months of the year.
Exporting sustainably to the EU, businesses must be "green"

Exporting sustainably to the EU, businesses must be "green"

VCN - Since the third year of the EVFTA implementation roadmap, the advantages have been somewhat affected, because the EU is applying more high standards, increasing quality requirements, especially in the fields of environment and development. sustainable development... with imported goods.
Semiconductors a future key industry of Vietnam

Semiconductors a future key industry of Vietnam

To maintain a high growth rate of exports, it was necessary to target new trends, including semiconductors, said experts.
Nearly 50 Vietnamese companies join trade promotion event in India

Nearly 50 Vietnamese companies join trade promotion event in India

Nearly 50 enterprises from Vietnam attended a trade promotion and business matching programme on September 22-23 as part of the Uttar Pradesh International Trade Show (UPITS), held for the first time by the administration of the Indian state of Uttar Pradesh.

More News

The food industry has many advantages in increasing exports

The food industry has many advantages in increasing exports

VCN - Although Ho Chi Minh City's food industry is facing many difficulties and challenges, it is gradually recovering and it is predicted that in the near future, there will be many opportunities to increase export orders. Customs Magazine discussed this content with Ms. Ly Kim Chi, President of the Ho Chi Minh City Food Association.
A "moderate" increase in VND and US$ exchange rates will boost exports

A "moderate" increase in VND and US$ exchange rates will boost exports

VCN - According to experts, in recent times, the moderate depreciation of VND compared to USD will help promote export activities and increase the competitiveness of Vietnamese exports.
Vietnam’s aquaculture top position on world map

Vietnam’s aquaculture top position on world map

The growth in Vietnam's seafood export turnover in recent years has been created from the foundation of the aquatic farming, exploitation and processing industry.
Compliance with quality standards – a must to bolster fruit exports: insiders

Compliance with quality standards – a must to bolster fruit exports: insiders

Farmers and businesses must improve product quality, and strictly follow the rules of origin and ensure food safety to boost fruit exports, experts said.
Implement effectively stimulus policies to promote growth

Implement effectively stimulus policies to promote growth

VCN - Export is one of Vietnam's important growth drivers, but this pillar is facing difficulties due to a decline in orders for many export industries. Supporting businesses in restoring production and strengthening the export capacity of localities, especially key areas, solutions are needed, while maximizing the capacity to overcome challenges. Economic expert, Associate Professor, Dr. Dinh Trong Thinh had a discussion with Customs Magazine about this issue.
The United States - a potential market for exporting goods

The United States - a potential market for exporting goods

VCN - For many consecutive years, the United States has been the most important trading partner and largest export market of Vietnam with a proportion of nearly 30% of Vietnam's total export turnover. In 2022, Vietnam has become the 8th largest trading partner of the United States.
PM’s Brazil visit to promote bilateral cooperation in new fields: expert

PM’s Brazil visit to promote bilateral cooperation in new fields: expert

The upcoming visit to Brazil by Vietnamese Prime Minister Pham Minh Chinh will create opportunities for the two countries to renew their strategic partnership and promote their bilateral cooperation in new areas, an expert has said.
Vietnam – poweful magnet for foreign direct investment

Vietnam – poweful magnet for foreign direct investment

Vietnam has become one of the leading countries in Southeast Asia in attracting foreign direct investment (FDI), according to an article published on September 21 on the website gfmag.com of Global Finance Magazine.
Veggie, fruit exports to China enjoy double-digit growth rate

Veggie, fruit exports to China enjoy double-digit growth rate

Vietnam’s turnover of vegetable and fruit exports to China has seen double-digit growth since the beginning of the year, maintaining China's position as the largest importer of these products.
Read More

Your care

Latest Most read
2 export commodity groups increased "billion dollars" in 8 months

2 export commodity groups increased "billion dollars" in 8 months

VCN - Data from the General Department of Customs recorded that up to 11 export commodity groups decreased by over 500 million USD compared to the same period last year.
Exporting sustainably to the EU, businesses must be "green"

Exporting sustainably to the EU, businesses must be "green"

VCN - Regarding the environment, the EVFTA mentions four main aspects including: climate change, biodiversity, sustainable forest management and forest product trade and development management, conservation of marine life and aquaculture. Seafood.
Semiconductors a future key industry of Vietnam

Semiconductors a future key industry of Vietnam

To maintain a high growth rate of exports, it was necessary to target new trends, including semiconductors, said experts.
Nearly 50 Vietnamese companies join trade promotion event in India

Nearly 50 Vietnamese companies join trade promotion event in India

Nearly 50 enterprises from Vietnam attended a trade promotion and business matching programme on September 22-23 as part of the Uttar Pradesh International Trade Show (UPITS), held for the first time by the administration of the Indian state of Uttar Pradesh.
The food industry has many advantages in increasing exports

The food industry has many advantages in increasing exports

VCN - According to statistics from Ho Chi Minh City, the industrial production index (IIP) of Ho Chi Minh City in the first 6 months of 2023 increased by 1.9% compared to the same period in 2022, but the IIP index of the food processing industry decreased
Mobile Version