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Ministry of Industry and Trade works with Samsung and Toyota to produce domestic components and accessories

20:35 | 18/01/2022

VCN - The Ministry of Industry and Trade determined that, in 2022, they would closely coordinate with a number of multinational FDI enterprises such as Samsung and Toyota to strengthen the connection with domestic enterprises producing raw materials, components and accessories that have the production capacity to replace imported sources in the short term as well as in the long term.

The Ministry of Industry and Trade would closely coordinate with a number of multinational FDI enterprises such as Samsung, Toyota, etc. to strengthen the search and connection of domestic enterprises producing raw materials and accessories
The Ministry of Industry and Trade would closely coordinate with a number of multinational FDI enterprises such as Samsung, Toyota, etc. to strengthen the search and connection of domestic enterprises producing raw materials and accessories. Photo: Samsung Vietnam

According to the Ministry of Industry and Trade, in 2021, industrial production faced many difficulties but still maintained a positive growth rate.

In 2021, industrial production maintained a good growth rate, while industrial value-added increased by 4.82%, higher than the same period last year and higher than the growth rate of the overall growth of the economy.

The group of processing and manufacturing industries developed. Key industries (such as electronics, textiles, footwear, furniture) have grown at a good rate, which is the main factor contributing to the development of Vietnam's industry.

Notably, industrial development in localities made great efforts to overcome difficulties during the pandemic. There were 48 localities with an increase in the index of industrial production (IIP); while only 15 localities experienced a decrease in IIP compared to 2020. In particular, the following provinces witnessed the highest increase: Ninh Thuan (24.6%), Dak Lak (23.8%), Gia Lai (20.5%), Hai Phong (18.2%) and Binh Phuoc (17.8%).

Besides the results, speaking at a conference on reviewing the work in 2021 and deploying tasks in 2022 of the Industry and Trade sector on January 9, 2022, Deputy Minister of Industry and Trade Tran Quoc Khanh said industrial production still faces certain limitations.

Specifically, industrial production activities faced more difficulties than in 2020 due to the Covid-19 pandemic in industrial parks and export processing zones. Hence, it affected the overall growth rate of the industry.

Domestic manufacturing enterprises are mainly small and medium sized, with low competitiveness. They also faced many difficulties due to the impact of the Covid-19 pandemic. Meanwhile, they have to cope with high production costs due to the increase in input material prices, transportation and logistics costs, and additional costs of pandemic prevention and control.

Furthermore, many businesses suffered from production interruptions, reducing orders, labor shortages, and a sharp drop in revenue.

Some localities could not maintain industrial growth, such as Ho Chi Minh City (declining by 14.3%), Can Tho (decreasing by 10.1%), Tra Vinh (by 9.5%) and Dong Thap (down by 8%).

“Supporting industries developed slowly and did not meet the needs of domestic exports, leading to a low rate of localization in industries, and low added value created in the country," Deputy Minister Tran Quoc Khanh said.

The next issue mentioned by the leadership of the Ministry of Industry and Trade is that industrial production capacity needs to be improved, especially in fundamental and key industries leading to continuing to import a large volume of machinery, equipment, spare parts and raw materials for domestic industries.

The link between FDI enterprises and domestic enterprises is still weak, so it has not promoted the development of management skills, technology transfer, formation of supply chains of raw materials and industrial clusters. "There has not been the strong participation of domestic enterprises in the global production and supply chains," Khanh said.

In 2022, in order to contribute to achieving the GDP growth rate of the whole country by 6- 6.5%, the Industry and Trade industry strived to achieve the IIP target of about 7 - 8%.

The Ministry of Industry and Trade has determined that it would effectively implement projects on assisting supporting industries under the approved Supporting Industry Development Program in a number of key industries such as the automobile industry, electronics, textiles and footwear.

Focusing on organizing connections and supporting domestic enterprises to participate in the supply chain for enterprises and foreign-invested projects in order to effectively exploit the integration process.

“The Ministry of Industry and Trade would closely coordinate with a number of multinational FDI enterprises such as Samsung, Toyota, etc. to strengthen the search and connection of domestic enterprises producing raw materials and accessories that are capable of producing materials and accessories in the country in order to replace import sources in the short term as well as in the long term," Khanh said.

By Thanh Nguyễn/Thanh Thuy