To develop the research and development centers for the supporting industries

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Dear Sir, would you like to assess the development of supporting industry in the past time?

Minister Tran Tuan Anh:

- Practical review shows that the development of supporting industry has the initial foundation, creating the basis for the development of industries, contributing to the socio-economic development of Vietnam, as well as the integration process. In stages, Vietnam has relative specific policies to develop the supporting industry. However, the development of supporting industry still has a long way to go, a very large gap compared to the requirements, as well as the opportunities and challenges set currently.

Dear sir, how has the strong integration of the Vietnamese economy into the global economy, especially with the recent adoption by the National Assembly for the Comprehensive Partnership and Trans-Pacific Partnership Agreement (CPTPP) been posing the urgent demand for the development of supporting industry?

Minister Tran Tuan Anh:

- Vietnam is entering a deep integration period of the economy. This means that the Vietnamese products participating in the value chain will face competitive pressures from other countries and economies. In particular, the context of globalization and the Industrial Revolution 4.0 does not allow Vietnam to continue to have further delays to improve the competitiveness of industrial products. The supporting industry is determined to play the role of an essential foundation to improve the competitiveness of industrial products. Currently, not only with CPTPP but also with 16 Free Trade Agreements (FTAs), Vietnam has signed very urgent requirements which must speed up the pace and quality of the supporting industry’s development

The obvious point is that if development is focused on a large scale, it will be difficult to be developed in depth. Would you like to tell us which sectors and fields the Ministry of Industry and Trade will focus on for the development of supporting industry in the coming time?

Minister Tran Tuan Anh:

- Ministry of Industry and Trade has had very specific tasks, identifying a number of priority key industries that need to strengthen development and must develop breakthroughs in the supporting industry to bring motivations to promote general development of industry.

Some industries identified clearly by the Ministry of Industry and Trade under the Government’s agreement are the electronics industry, automobile industry, textile industry, footwear, energy industry... They are the industries for which Vietnam has potential, advantages and market capacity. Of course, there will be challenges from the integration process, but it is important to turn these challenges into opportunities. Specifically, the obvious challenge is to open the door to face competition, but if it is assumed that this is an opportunity to restructure the industries including the supporting industry, the restructuring process will allow the enterprises to access technology, innovate technology, access to the market…

In addition, the Ministry of Industry and Trade has reported to the Prime Minister, hoping to formulate the conditions in the near future for the establishment of research and development centers and support for the supporting industry, first of all in 3 big economic centers in the Northern, Central and Southern regions. These centers not only focus on introducing technology, support conditions for the enterprises to access technology through international cooperation and government policies in general, but also support the R&D research (research and development), from which these centers will contribute to the development of added value.

Dear Sir, with the "leading" enterprises involved in the development of supporting industry, in the immediate future, does the State have a special support policy?

Minister Tran Tuan Anh:

- For "leading" enterprises, the State provides great support. The enterprises themselves are aware of social responsibility and responsibility to the nation and the economy. For example, in the automobile mechanics industry, Truong Hai Company, Vinfast Company and some other businesses, their awareness and strong actions are very clear. The Government also has very proactive policy mechanisms to favor and support the enterprises through the scale of projects that are spreading to the economic sectors, the industries, including the supporting industry. However, in the coming time, we have to go deeper into the specific supports for these enterprises. Supports are not only by the resources but also by mechanisms and policies in accordance with Vietnam's legal provisions and integration commitments. It is important to orient the enterprises to spread and share. In particular, there are many issues to be done such as: Improving the investment and business environment; continuing to adjust a number of legal frameworks such as Value Added Tax Law and Special Consumption Tax to promote the added values for the supporting industry production; continuing to support the enterprises to access the international market...

In addition to building mechanisms and policies to support the enterprises, would you like to evaluate the role of synchronization, coordination at both central and local levels in implementing these mechanisms and policies to develop the supporting industry?

Minister Tran Tuan Anh:

- Viewpoint of the Government affirms that Vietnam has integrated very deeply, there are many opportunities with FTAs for Vietnamese products in the world market. However, if there is not a good supporting industry, the added value and the exploitation of opportunities and incentives in these FTAs will be limited. Thus, giving up those benefits to the foreign enterprises and products, is no different to giving up in the battlefield.

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I think that the coordination of implementing legal policies is extremely important. Vietnam has many policy frameworks. For example, Decree 111/2015/ND-CP on development of supporting industry or Law on small and medium enterprises, but many problems arise when implementing it. Besides, it is necessary to direct and unify from the central to local levels in the process of development, to ensure the supporting industry develops sustainably on the basis of compliance with the law, including on the environment protection issues. The local authorities must create various steps in attracting and creating conditions to develop the supporting industry enterprises...

Thank you, Sir!