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Nine solutions needed for supporting industry enterprises

09:32 | 20/01/2022

VCN - Vietnam only has about 0.2% of a total of nearly one million Vietnamese enterprises engaged in producing and manufacturing in the supporting industry. This is an alarming number when compared to the business community in this field in other countries in the region.

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Nine solutions needed for supporting industry enterprises
Vietnam is importing tens of billions of dollars of electronic components. Photo: Nguyen Thanh

The level of localization is low

Talking to Customs News, Mr. Nguyen Hoang, Chairman of Hanoi Association of Supporting Industry Enterprises (HANSIBA), Vice Chairman of Vietnam Association of Supporting Industry (VASI), estimated the production situation of products of supporting industries of Vietnamese enterprises are in the following industries: automobile manufacturing, the localization level is about 5-20%; electronics 5-10%; textile, leather and footwear about 30%; supporting industry for high technology 1-2%.

According to Mr. Hoang, this is a huge limitation, leading to the annual volume of components imported to Vietnam to assemble, manufacture and produce for export up to tens of billions of USD, especially imported components in the electronics and automobile industry at about US$35-50 billion.

Mr. Nguyen Hoang said the good news is that the Party and State have correctly determined the policy of concentrating all resources for the rapid and strong development of the industry in general and Vietnam's supporting industry in particular. Therefore, the management agencies have issued many important documents to promote the development of the supporting industry.

However, there are many difficulties for businesses. Representatives of supporting industry enterprises said that due to many factors and the profits of corporations, the support to create favorable conditions for Vietnamese enterprises to participate in the production and supply of spare parts for FDI enterprises is very limited.

Along with that, the source of Vietnamese enterprises is limited, many businesses only seek short-term profits and spontaneously follow movements, most Vietnamese enterprises only see great difficulties when participating in the supporting industry field.

It is necessary to build the Law on Supporting Industry

With the above issues, on behalf of the supporting industry business community, the President of HANSIBA proposed to the management agencies nine solutions.

Specifically, the National Assembly and Government agencies should soon develop the Law on Supporting Industry and submit it to the National Assembly for promulgation as soon as possible; establish a State-level Steering Committee headed by the Deputy Prime Minister, to unify the direction and promote the resolution of difficulties and problems for supporting industry enterprises; develop specific plans and roadmaps for the development of enterprises in the supporting industry, determined by 2025 with a vision to 2030 to reach 5-10% of the total number of Vietnamese enterprises.

He also said that it is necessary to plan specifically for each economic region to develop supporting industries, to avoid wasting resources and creating unnecessary competition. An urgent solution package is needed, especially in terms of capital, because the current loan conditions are difficult for enterprises producing supporting industry products.

The State needs to have specific plans and policies to support the formation of a number of specialized industrial parks, support the training of high-quality workers, and provide technology support when importing old and used equipment, in accordance with international and Vietnamese standards.

Allowing private enterprises in the supporting industry and supporting industries for high technology to access ODA loans to invest in purchasing equipment, machinery and technology from abroad (especially Japan) to be able to link to the production chain of Japan and the world.

According to Mr. Nguyen Hoang, it is very important to connect large international corporations present in Vietnam, promoting and "coaching" so that these FDI enterprises can also order, from that help Vietnamese enterprises directly enter the supporting industry production chain.

Mr. Nguyen Hoang also emphasized the issue of starting a business, so it is necessary to have specific preferential policies to encourage young Vietnamese who have studied and worked in companies and countries with developed supporting industries to become entrepreneurs in 100% Vietnamese supporting industry enterprises.

By Huong Diu/Quynh Lan