Supporting industries needs a push to grow: Insiders

As the development of supporting industries of Vietnam has yet to match their potential, the sector needs a push to clinch a position in the domestic market and rise to the world, according to insiders.
Currently, 5,000 businesses are operating in supporting industries (Photo: VNA)

Currently, 5,000 businesses are operating in supporting industries (Photo: VNA)

As the development of supporting industries of Vietnam has yet to match their potential, the sector needs a push to clinch a position in the domestic market and rise to the world, according to insiders.

The Ministry of Industry and Trade (MoIT) said that the majority of businesses in the industries are small and medium in size, facing difficulties in market, technology, human resources and capital, while the investment policy for research and development (R&D) in this area has yet to receive due attention, hindering enterprises from expanding their operation to the world market.

Experts held that Vietnamese businesses have fewer advantages than their peers with similar conditions in the region due to policy limitations.

Truong Thi Chi Binh, General Secretary of the Vietnam Association of Supporting Industries (VASI), said over the years, although Vietnam has opened its door for foreign investors in the fields of processing-manufacturing, supporting industries in the country have yet to make much progress.

A representative from the Vietnam Association of Mechanical Industries (VAMI) underlined that domestic firms have failed to make full use of abundant opportunities in mechanics, losing many big projects and bidding packages to their foreign rivals.

The major reason behind the situation is that equipment and machinery manufacturing serving other sectors like chemical, transport, oil and gas and agriculture requires large investment and long capital retrieval period, while firms in supporting industries find it hard to access bank loans.

Cao Thanh Dao, Director of 3A+ Equipment & Technology Services Company, said Vietnam has adopted investment policies for R&D in supporting industries, yet the implementation remains limited.

The MoIT said that currently, 5,000 businesses are operating in supporting industries, and they have enjoyed many incentives, including those in corporate income tax.

The ministry has issued 206 incentive confirmation certificates to businesses with projects producing supporting products.

Alongside, a decree amending the Government’s Decree No.111/2015-ND-CP on boosting the growth of supporting industries is being drafted with many mechanisms and policies to help businesses in the sector enhance their competitiveness, meeting the requirements of multi-national groups and attracting investment.

The ministry revealed that it has proposed a 3% interest rate support for middle- and long-term loans for the firms through commercial banks.

Hailing the policies, Binh held that once approved, they will create a great help for domestic businesses in supporting industries to grow further.

However, insiders underlined the need to make continuous efforts to remove barriers in administrative procedures and business conditions for supporting industries./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

Building a Vietnamese brand associated with green and sustainable development

Building a Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Pepper export turnover up over 30% in H1

Pepper export turnover up over 30% in H1

Vietnam exported 142,586 tonnes of pepper in the first half of this year, down 6.8% in volume but up 30.5% in value, the Vietnam Pepper and Spice Association (VPSA) has reported.
Dong Nai remains FDI magnet in H1

Dong Nai remains FDI magnet in H1

The foreign direct investment (FDI) influx into the southern industrial hub of Dong Nai in the first six months of this year was equivalent to 138% of the locality’s plan for the whole year.
Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnam boasts advantages and potential in agricultural production and export, yet domestic firms need to do more to join the global food supply chain more intensively, insiders have said.

More News

Developing export markets along with trade promotion

Developing export markets along with trade promotion

VCN - Import and export of goods in the first 6 months of 2024 continue to record positive results, total turnover is estimated at USD 369.6 billion, up 16% over the same period last year.
Building the Vietnamese brand associated with green and sustainable development

Building the Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes even more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Improving the competitiveness of businesses is an important factor

Improving the competitiveness of businesses is an important factor

VCN - Local competitiveness is not only based on economic management capacity, the favorable and friendly business environment and efforts to improve administrative reform efforts of provincial and city governments (PCI) but also relies on the competitiveness of local businesses.
Malaysia to boost exports to Vietnam

Malaysia to boost exports to Vietnam

The Malaysian Ministry of Investment, Trade and Industry (MITI) on July 11 announced that the country has secured potential exports worth 3.3 billion RM (about 717 million USD) to Vietnam.
Exporters advised to update trade policies of Singapore

Exporters advised to update trade policies of Singapore

The Vietnam Trade Office in Singapore has advised Vietnamese exporters to carefully study and keep updated on new regulations in Singapore, a market that is becoming more cautious in trade policy, in order to further exploit this market.
Import and export turnover increases to US$ 51 billion

Import and export turnover increases to US$ 51 billion

VCN – Import-export turnover in June saw a slight decrease but remained at a high level, the General Department of Vietnam Customs announces.
Green logistics – a key for sustainable development

Green logistics – a key for sustainable development

Green logistics development is no longer a trend, it is an inevitable requirement with activities throughout the stage of purchasing raw materials, production, distribution, delivery, waste treatment - throughout the entire business life cycle.
Manufacturing enterprises need to adapt to trends to develop: experts

Manufacturing enterprises need to adapt to trends to develop: experts

Besides the factors of price, product quality and delivery time, green and sustainable development are competitive criteria that more and more markets are requiring from suppliers in Ho Chi Minh City as well as across the country.
Rubber exports grows sharply in June

Rubber exports grows sharply in June

VCN - According to Import – Export Tax Department (Ministry of Industry and Trade), Vietnam's rubber exports in June 2024 reached about 150 thousand tons, worth 238 million USD, up 77.6% in volume and 76.6% in value. Price compared to May 2024.
Read More

Your care

Latest Most read
Building a Vietnamese brand associated with green and sustainable development

Building a Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Pepper export turnover up over 30% in H1

Pepper export turnover up over 30% in H1

Vietnam exported 142,586 tonnes of pepper in the first half of this year, down 6.8% in volume but up 30.5% in value, the Vietnam Pepper and Spice Association (VPSA) has reported.
Dong Nai remains FDI magnet in H1

Dong Nai remains FDI magnet in H1

The foreign direct investment (FDI) influx into the southern industrial hub of Dong Nai in the first six months of this year was equivalent to 138% of the locality’s plan for the whole year.
Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnam boasts advantages and potential in agricultural production and export, yet domestic firms need to do more to join the global food supply chain more intensively, insiders have said.
Developing export markets along with trade promotion

Developing export markets along with trade promotion

VCN - Import and export of goods in the first 6 months of 2024 continue to record positive results, total turnover is estimated at USD 369.6 billion, up 16% over the same period last year.
Mobile Version